Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35847

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

42 CFR Part 121

Organ Procurement and

Transplantation Network; Final Rule

Revision of Comment Period and

Effective Dates

AGENCY: Health Resources and Services

Administration, HHS.

ACTION: Extension of Comment Period

and Delay of Effective Date for the

Organ Procurement and Transplantation

Network.

SUMMARY: This document sets forth the

revisions required by the Fiscal Year

1998 Supplemental Appropriations Act,

Public Law 105–174, signed into law by

the President on May 1, 1998. Section

4002 of that Act states that public

comments on the Organ Procurement

and Transplantation Network (OPTN)

Final Rule are permitted until August

31, 1998, and that the OPTN rule will

not become effective before October 1,

1998. This document is provided to

notify the public about these provisions

and to make corresponding changes to

the regulation.

DATES: The effective date of the final

rule published April 2, 1998 (63 FR

16296), as amended in this rule, is

delayed until October 1, 1998.

Comments on the final rule may be

submitted through August 31, 1998.

ADDRESSES: Written comments may be

addressed to Jon L. Nelson, Associate

Director, Office of Special Programs,

Room 123, Park Building, 12420

Parklawn Drive, Rockville, MD 20857 as

provided in the April 2, 1998, final rule,

63 FR 16296.

FOR FURTHER INFORMATION CONTACT: Jon

L. Nelson, Associate Director, Office of

Special Programs, 5600 Fishers Lane,

Room 7–29, Rockville, MD 20857,

telephone 301–443–7577.

SUPPLEMENTARY INFORMATION: On April

2, 1998, the Secretary of Health and

Human Services published in the

Federal Register a final rule governing

the operation of the Organ Procurement

and Transplantation Network. That

document invited public comments for

a period of sixty days, ending on June

1, 1998. The final rule was to be

effective on July 1, 1998.

As a result of the enactment of the

Supplemental Appropriations Act, the

comment period has been extended

until August 31, 1998, and the final rule

will become effective on October 1,

1998. Consistent with these extensions,

several of the provisions of the final rule

whose internal deadlines were tied to

the effective date of the final rule are

also being extended.

Therefore, 42 CFR Part 121, as

promulgated at 63 FR 16296–16338, is

amended as follows:

1. The authority citation for Part 121

continues to read as follows:

Authority: Sections 215, 371–376 of the

Public Health Service Act (42 U.S.C. 216,

273–274d); Sections 1102, 1106, 1138, and

1872 of the Social Security Act (42 U.S.C.

1302, 1306, 1320b–8 and 1395ii).

§ 121.3 [Amended]

2. In § 121.3(e), revise ‘‘July 1, 1998,’’

wherever it appears to read ‘‘October 1,

1998,’’.

§ 121.8 [Amended]

3. § 121.8(c)(1), revise ‘‘July 1, 1999’’

to read ‘‘October 1, 1999’’.

4. § 121.8(c)(2), revise ‘‘August 31,

1998’’ to read ‘‘November 30, 1998’’.

Dated: June 2, 1998.

Claude Earl Fox,

Administrator.

Approved: June 23, 1998.

Donna E. Shalala,

Secretary.

[FR Doc. 98–17624 Filed 6–30–98; 8:45 am]

BILLING CODE 4180–15–M

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 1

[MD Docket No. 98–36; FCC 98–115]

Assessment and Collection of

Regulatory Fees for Fiscal Year 1998

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: The Commission has revised

its Schedule of Regulatory Fees in order

to recover the amount of regulatory fees

that Congress has required it to collect

for fiscal year 1998. Section 9 of the

Communications Act of 1934, as

amended, provides for the annual

assessment and collection of regulatory

fees. For fiscal year 1998 sections 9(b)(2)

and (3) provide for annual ‘‘Mandatory

Adjustments’’ and ‘‘Permitted

Amendments’’ to the Schedule of

Regulatory Fees. These revisions will

further the National Performance

Review goals of reinventing Government

by requiring beneficiaries of

Commission services to pay for such

services.

EFFECTIVE DATE: August 31, 1998.

FOR FURTHER INFORMATION: Terry

Johnson, (202) 418–0445, Office of

Managing Director.

SUPPLEMENTARY INFORMATION:

Adopted: June 9, 1998; Released: June

16, 1998

By the Commission:

TABLE OF CONTENTS

Topic Paragraph

No.

I. Introduction ........................................................................................................................................................................................... 1

II. Background .......................................................................................................................................................................................... 5

III. Discussion

A. Cost-Based Fee Methodology ..................................................................................................................................................... 9

B. Relationship of Cost Service to Revenue Requirement .............................................................................................................. 15

C. The 25% Ceiling on Fees ............................................................................................................................................................ 21

D. Application of Cost-Based Methodology to Determine Fee Amounts

i. Adjustment of Payment Units ................................................................................................................................................. 25

ii. Calculation of Revenue Requirements .................................................................................................................................. 26

iii. Calculation of Regulatory Costs ........................................................................................................................................... 27

iv. Application of 25% Revenue Ceiling .................................................................................................................................... 28

v. Recalculation of Fees ............................................................................................................................................................ 29

vi. Proposed Changes to Fee Schedule ................................................................................................................................... 30

a. Commercial AM & FM Radio ......................................................................................................................................... 31

b. CMRS ............................................................................................................................................................................. 41
35848 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

TABLE OF CONTENTS—Continued

Topic Paragraph

No.

c. Space Stations and Bearer Circuits

i. Geostationary Satellites ........................................................................................................................................... 50

ii. Non-geostationary Satellites ................................................................................................................................... 54

iii. Bearer Circuits ........................................................................................................................................................ 57

d. Interstate Telephone Service Providers ......................................................................................................................... 64

E. Schedule of Regulatory Fees ...................................................................................................................................................... 68

F. Effect of Revenue Redistributions on Major Constituencies ....................................................................................................... 69

G. Procedures for Payment of Regulatory Fees

i. Installment Payments for Large Fees .................................................................................................................................... 70

ii. Annual Payments of Standard Fees ..................................................................................................................................... 72

iii. Advance Payment of Small Fees ......................................................................................................................................... 73

iv. Standard Fee Calculations and Payment Dates .................................................................................................................. 74

v. Minimum Fee Payment Liability ............................................................................................................................................ 76

IV. Ordering Clause ................................................................................................................................................................................. 77

V. Authority and Further Information ....................................................................................................................................................... 78

Attachment A—Final Regulatory Flexibility

Analysis

Attachment B—Sources of Payment Unit

Estimates

Attachment C—Calculation of Revenue

Requirements

Attachment D—Calculation of Regulatory

Costs

Attachment E—Calculation of FY 1998

Regulatory Fees

Attachment F—Schedule of Regulatory Fees

Attachment G—Comparison between FY

1997 and FY 1998 Proposed & Final

Regulatory Fees

Attachment H—Detailed Guidance on Who

Must Pay Regulatory Fees

Attachment I—Description of FCC Activities

Attachment J—Factors, measurements and

calculations that go into determining

station signal contours and associated

population coverages

Attachment K—Parties Filing Comments and

Reply Comments

Attachment L—FY 1998 AM/FM Regulatory

Fees

I. Introduction

1. By this Report and Order, the

Commission concludes its rulemaking

proceeding to revise its Schedule of

Regulatory Fees in order to recover the

amount of regulatory fees that Congress

has required it to collect for Fiscal Year

(FY) 1998. See 47 U.S.C. 159(a).

2. Congress has required us to collect

$162,523,000 in regulatory fees in order

to recover the costs of our enforcement,

policy and rulemaking, international

and user information activities for FY

1998. See Pub. L. 105–119 and 47 U.S.C.

159(a)(2). This amount is $10,000,000 or

nearly 7% more than the amount that

Congress designated for recovery

through regulatory fees for FY 1997. See

Assessment and Collection of

Regulatory Fees for Fiscal Year 1997,

FCC 97–215, released June 26, 1997, 62

FR 37408, July 11, 1997. Thus, we are

revising our fees in order to collect the

increased amount as specified by

Congress. Additionally, we are

amending the Schedule in order to

simplify and streamline the Fee

Schedule, including clarification of

feeable categories in the Commercial

Mobile Radio Services (CMRS),

renaming the LEO category as Space

Stations Non-geostationary, and

clarifying when those stations must

begin paying regulatory fees. We have

also revised our methodologies for

assessing AM and FM radio fees. See 47

U.S.C. 159(b)(3).

3. In revising the fees, we have

adjusted the payment units and revenue

requirement for each service subject to

a fee, consistent with sections 159(b)(2)

and (3). In addition, we have made

changes to the fees pursuant to public

interest considerations such as the 25%

cap on increases in the fees which is

explained in more detail below. We are

amending §§ 1.1152 through 1.1156 to

reflect the fee revisions. See 47 CFR

1.1152 through 1.1156. See also Rule

Changes and Attachment F for our

revised fee schedule for FY 1998.

4. Finally, we have included, as

Attachment H, Guidance containing

detailed descriptions of each fee

category, information on the individual

or entity responsible for paying a

particular fee and other critical

information designed to assist potential

fee payers in determining the extent of

their fee liability, if any, for FY 1998. In

the following paragraphs, we describe in

greater detail our methodology for

establishing our FY 1998 regulatory

fees.

II. Background

5. Section 9(a) of the Communications

Act of 1934, as amended, authorizes the

Commission to assess and collect

annual regulatory fees to recover the

costs, as specified each year by

Congress, that it incurs in carrying out

enforcement, policy and rulemaking,

international, and user information

activities. See 47 U.S.C. 159(a). See

Attachment I for a description of these

activities. In our FY 1994 Report and

Order, 59 FR 30984, June 16, 1994, we

adopted the Schedule of Regulatory

Fees that Congress established and we

prescribed rules to govern payment of

the fees, as required by Congress. See 47

U.S.C. 159(b), (f)(1). Subsequently, in

our FY 1995, FY 1996, and FY 1997

Reports and Orders, 60 FR 34004, June

29, 1995, 61 FR 36629, July 12, 1996,

and 62 FR 37408, July 11, 1997, we

modified the Schedule to increase by

approximately 93 percent, 9 percent,

and 21 percent, respectively, the

revenue generated by these fees in

accordance with the amounts Congress

required us to collect for each of those

fiscal years. Also, in our FY 1995, FY

1996, and FY 1997 fee decisions, we

amended certain rules governing our

regulatory fee program based upon our

experience administering the program

in prior years. See 47 CFR 1.1151 et seq.

6. For fiscal years after FY 1994,

however, sections 9(b)(2) and (3),

respectively, provide for ‘‘Mandatory

Adjustments’’ and ‘‘Permitted

Amendments’’ to the Schedule of

Regulatory Fees.

See 47 U.S.C. 159(b)(2), (b)(3). Section

9(b)(2), entitled ‘‘Mandatory

Adjustments,’’ requires that we revise

the Schedule of Regulatory Fees

whenever Congress changes the amount

that we are to recover through

regulatory fees. See 47 U.S.C. 159(b)(2).

7. Section 9(b)(3), entitled ‘‘Permitted

Amendments,’’ requires us to determine

annually whether additional

adjustments to the fees are warranted,

taking into account factors that are

reasonably related to the payer of the fee

and factors that are in the public

interest. In making these amendments,

we are required to ‘‘add, delete, or
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35849

1The impact of regulatory fees on the FCC’s

appropriation is substantial. For example, without

regulatory fees to offset the Commission’s costs, the

FCC would require a Congressional appropriation of

$186.5 million for FY 1998. When offsetting

regulatory fees are taken into consideration, only

$24 million must be appropriated from tax receipts

to fund the Commission. Thus, taxpayers are spared

the expense of funding almost 87% of the

Commission’s annual budget. Funds collected as

application or filing fees pursuant to section 8 of

the Act are deposited into the General Fund of the

U.S. Treasury as reimbursement to the United

States but, unlike section 9 regulatory fees, do not

offset funds appropriated to the Commission. 47

U.S.C. 158(a).

2Payment units are the number of subscribers,

mobile units, pagers, cellular telephones, licenses,

call signs, adjusted gross revenue dollars, etc.

which represent the base units for which fees are

calculated.

reclassify services in the Schedule to

reflect additions, deletions or changes in

the nature of its services.’’ See 47 U.S.C.

159(b)(3).

8. Section 9(i) requires us to develop

an accounting system to adjust our fees

to reflect changes in the costs of

regulating various services and for other

purposes. See 47 U.S.C. 9(i). We

developed and implemented the cost

accounting system in conjunction with

FY 1997 fees. For FY 1998, we continue

to rely on cost accounting data to

identify our regulatory costs and to

develop fees based upon these costs.

Also, for FY 1998, we have limited the

increase in the amount of the fee for any

service in order to phase in our reliance

on cost-based fees for those services

whose revenue requirement would be

more than 25 percent above the revenue

requirement which would have resulted

from the ‘‘mandatory adjustments’’ to

the FY 1997 fees without incorporation

of costs. This methodology enables us to

develop regulatory fees which more

closely reflect our costs of regulation.

Finally, section 9(b)(4)(B) requires that

we notify Congress of any permitted

amendments 90 days before those

amendments go into effect. See 47

U.S.C. 159(b)(4)(B).

III. Discussion

A. Cost-Based Fee Methodology

9. Congress has required us to recover

$162,523,000 in FY 1998 regulatory

fees, representing the costs applicable to

our enforcement, policy and

rulemaking, international, and user

information activities.1 See 47 U.S.C.

159(a).

10. In our FY 1998 NPRM we

developed our proposed FY 1998 fee

schedule using the same general

methodology as we used in developing

fees for FY 1997. We estimated payment

units 2 for FY 1998 in order to determine

the aggregate amount of revenue we

would collect without any revision to

our FY 1997 fees. Because the total was

greater than $162,523,000, we pro-rated

the overage among all the existing fee

categories reducing the revenue

amounts to total $162,523,000.

11. The NPRM provided notice that

we would rely on the cost accounting

system implemented in FY 1997 to

assist us in determining our costs of

regulation of those services subject to a

fee for FY 1998. In response, several

interested parties, including the

Personal Communications Industry

Association (PCIA), BellSouth Cellular

Corp., BellSouth Wireless Data, L.P.

(BellSouth), and PanAmSat Corporation

(PanAmSat), contend that we failed to

explain the accounting system

sufficiently to permit interested parties

to determine how the system distributes

costs among our various services.

PrimeCo argues that we merely

disclosed the results of the cost

accounting system and, therefore,

interested parties cannot evaluate our

cost accounting system or suggest

improvements. In addition, PCIA,

among others, argues that without more

data concerning our assignment of costs,

they cannot determine whether the costs

attributed to their services are

reasonable estimates of our actual costs.

12. The NPRM provided sufficient

information describing the accounting

system to afford interested parties the

opportunity to comment. Our NPRM

made it clear that our cost accounting

system relied upon information derived

from our personnel/payroll system and

our fiscal accounting system as the basis

for recording direct and indirect costs,

separately and combined, for every

major category of service subject to a

fee. The cost accounting system was

designed to identify the actual costs of

regulation by category of service and

this information, combined with other

data, yield fees more closely reflecting

the cost of our regulation. The

accounting system collects cost of

service information on an employee-byemployee basis.

13. The NPRM provided sufficient

detail concerning our manner of

distributing costs of personnel directly

assigned to regulatory activities, and

other costs included in our

determination of regulatory costs. The

system separately identifies direct costs,

including salary and expenses for staff

directly assigned to our operating

Bureaus, and other costs, such as rent,

utilities and contracts, directly

attributable to such personnel. Also,

included as indirect costs are those

costs attributable to personnel assigned

to overhead functions, including such

functions as field and laboratory staff,

on a proportional basis; i.e., spread

among all categories of service subject to

a fee according to their share of direct

costs. Finally, in Attachment D of the

NPRM, we provided a precise

calculation of the regulatory costs,

including separate discussions of the

cost accounting system’s accumulation

of the direct, indirect and total actual

costs for each major category of service.

Thus, our NPRM, consistent with

section 9(i) of the Act, sufficiently

described our cost accounting system,

including how it distributes actual costs

among the various categories of service,

affording parties an understanding of

the system sufficient for them to submit

comments on how the system allocated

costs among those services subject to a

regulatory fee. 47 U.S.C. 159(i)

14. Our cost accounting system was

developed under contract by American

Management Systems, Inc. (AMS) in FY

1995. The system has been integrated

with the Commission’s bi-weekly

payroll and fiscal accounting systems

and, as such, its procedures conform to

generally accepted cost accounting

principles and standards as mandated

by the General Accounting Office

(GAO) and by the U.S. Treasury

Department. Because the methodology

we employed in developing FY 1998

fees is the same as the one that was used

to develop the FY 1997 fees, we adopt

by incorporation paragraphs 16–20 of

the FY 1997 Report and Order which

provides detailed information covering

how our cost accounting system

operates.

B. Relationship of Cost Service to

Revenue Requirement

15. PCIA and other commenters

contend that the fees are unlawful

because allegedly there is no basis for or

relationship between the fees the

Commission is proposing to collect from

a particular class of licenses or

regulatees and the amount of regulatory

work or oversight associated with those

regulatees. We reject the arguments that

our proposed fees are inconsistent with

the statute or otherwise unlawful

because they are not completely costbased or do not reflect the benefits

received by entities subject to a fee

payment. Section 9(a) requires that we

recover our costs ‘‘in the total amounts

required in Appropriations Acts.’’ 47

U.S.C. 159(a).

Section 9(a) does not require that we

base our fees solely on benefits to

regulatees or that the fees recover from

an entity only its particular cost of

regulation. In our FY 1995 Report and

Order, we stated that we are not limited

to setting regulatory fees only in the

amount that reflects services received by

regulated entities. 10 FCC Rcd at 13521,
35850 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

3One commenter questioned how the

Commission’s use of contractors affected its

computation of Full Time Equivalency (FTE)

employee numbers. While the Commission used

FTE numbers in developing its FY 1995 and FY

1996 fee schedules it discontinued using FTE

numbers after it adopted a cost accounting system

in FY 1997. PCIA also questions the allocation of

such overhead costs as office moves. As with all

overhead, we allocate it to the functional area

where the cost was incurred, if this is feasible.

4 In this regard the Commission has been

checking the payments received from broadcast

licensees against the name of the licensees in the

Commission’s database. The Commission has

written to each licensee requesting payment or

evidence of payment or exempt status, in order to

perfect its database and ensure that the numbers of

licensees upon which fees are based is accurate.

citing Skinner v. Mid-America Pipe Line

Co., 490 U.S. 212, 224 (1989). Rather,

once Congress, as in section 9, has made

a proper delegation of authority to raise

funds, ‘‘so long as the fees in question

are within the scope of Congress’ lawful

delegation of authority in section 9, they

are constitutional.’’ Id. Thus, as we

noted in our FY 1995 Report and Order,

we ‘‘can collect fees from regulatees for

their use of frequencies and for the

potential benefits of regulatory

activities, even if they do not utilize

these activities.’’ See 60 FR 34000, (June

29, 1995), citing United States v. Sperry

Corp., 493 U.S. 52, 63. Thus, there is no

requirement that the fees we establish

be designed to recover only the costs of

those benefits directly received by an

entity. Rather, we may adjust the fees by

taking into consideration ‘‘factors that

the Commission determines are in the

public interest.’’ 47 U.S.C. 159(b)(1) (A).

16. We must collect in regulatory fees

the amount specified by Congress.

Direct costs, such as salary and

expenses for (a) staff directly assigned to

our operating Bureaus and performing

regulatory activities and (b) staff

assigned outside the operating Bureaus

to the extent that their time is spent

performing regulatory activities

pertinent to an operating Bureau, are

only part of the costs to be recovered

from each licensee. Indirect costs,

which include costs of support

personnel assigned to overhead

functions such as field and laboratory

staff and certain staff assigned to the

Office of Managing Director, and

support costs, including rent, utilities,

equipment, and contractual costs

attributable to regulatory oversight,

must also be recovered.3

17. Regulatory fees also recover costs

attributable to regulatees that Congress,

has exempted from the fees, such as

Citizen’s Band Radio and most

recreational ship and aircraft radio

station operators, amateur radio

licensees, governmental entities,

licensees in the public safety radio

services, and non-profit groups, as well

as costs attributable to licensees which

have been granted waivers of the fees.

47 U.S.C. 159(b)(d). The costs of

regulating these entities is borne by

those regulatees subject to a fee

requirement, with no direct measurable

benefit accruing to such fee payers. We

recover our costs of regulation for

exempt entities, and licensees who have

received waivers of the fees by

allocating our regulatory costs

attributable to them on a proportional

basis across all fee categories so as not

to unduly impact any particular

category of fee payers.

18. PCIA points out that our NPRM

did not provide actual FY 1997 fee

collection data, including the number of

actual payment units and the actual

amount of fees collected in certain fee

categories. These commenters contend

that such information is essential to the

evaluation of the Commission’s FY 1998

fee proposal and to insure that costs are

properly allocated among all regulatees

or licensees in a given service. We

recognize that we did not provide a

detailed listing of actual FY 1997

collections data in the NPRM. However,

Attachment B, of the NPRM, contained

a service-by-service explanation of the

basis of our estimated FY 1998 payment

units.

Several of these are based on actual

FY 1997 payments. Others are based on

estimates obtained from Commission

program experts or from regulated

industries. In any case, as we noted in

the NPRM, we consider, as one factor in

estimating payment units, the actual

number of payment units recorded in

our fees collection system for FY 1997.

These payment unit estimates used ‘‘as

of’’ dates corresponding to the

beginning of the current fiscal year, or,

for some fee categories, at the end of the

previous calendar year. We believe that

this reliance upon actual ‘‘historical’’ or

retrospective FY 1997 data provides us

a much greater confidence level than

would an estimate of payment units

made prospectively.4 Finally, from the

inception of the regulatory fee collection

program, actual historical payment units

and collection amounts for the various

categories of services have been

routinely available for inspection to

interested persons upon request. In sum,

we cannot find that there is a basis for

concluding that these commenters could

not fairly evaluate our proposed fees for

FY 1998 given the information

pertaining to payment units contained

in the NPRM and detailed collections

data readily available from the

Commission. Additionally, we note that

no interested party proposed alternative

payment units for any category of

service for FY 1998.

19. Finally, PCIA and other interested

parties are concerned about the amount

of the proposed increase in their

revenue requirements and in their fee

amounts for FY 1998 compared with

those established for FY 1997. They

question how estimates of actual costs

for FY 1997 and FY 1998 could differ so

significantly from one year to the next

in certain fee categories. These

differences can be attributed to the

increase in the amount to be collected

as specified by Congress, changes in the

numbers of units subject to the fees, and

changes in services. For example, in

reassigning services from the CMRS

Mobile category to the CMRS Messaging

category, we adjusted the estimated

payment units of both fee categories.

Moreover, as we have noted, because

each service must offset a portion of our

overhead costs, and subsidize costs not

related to its regulation, the resulting fee

will invariably exceed the payer’s direct

regulatory costs, not withstanding the

efforts by Congress and the Commission

to reduce the regulatory burden on our

licensees.

20. As noted in our FY 1997 Report

and Order, an important consideration

in utilizing a revenue ceiling is the

impact on other fee payers. Because the

Commission is required to collect a full

$162,523,000 in FY 1998 regulatory

fees, the additional revenue that would

have been collected from licensees

subject to a revenue ceiling had there

been no ceiling, needs to be collected

instead from licensees not subject to the

ceiling. Revenues from current fee

payers already offset costs attributable

to regulatees exempt from payment of a

fee or otherwise not subject to a fee

pursuant to section 9(h) of the Act or the

Commission’s rules. For example, CB

and ship radio station users, amateur

radio licensees, governmental entities,

licensees in the public safety radio

services, and all non-profit groups are

not required to pay a fee. The costs of

regulating these entities is borne by

those regulatees subject to a fee

requirement. We believe, however, that

the public interest is best served by this

methodology. To do otherwise would

subject payers in some fee categories to

unexpected major fee increases which

could severely impact the economic

well being of certain licensees.

Attachment E displays the step-by-step

process we used to calculate adjusted

revenue requirements for each fee

category for FY 1998, including the

reallocation of revenue requirements
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35851

5For example, PCIA has requested that we

establish a cost-increase benchmark at which point

an explanation of the increase for any affected

category must be included. A line-by-line

explanation of all accounting data is not feasible,

nor, do we believe, necessary in this item. Specific

cost accounting data is available to interested

parties upon request.

6We are not suggesting that fee increases are

limited to a 25 percent increase over the FY 1997

fees. The 25 percent increase is over and above the

revenue which would be required after adjusting for

projected FY 1998 payment units and the

proportional share of the 6.56 percent increase in

the amount that Congress is requiring us to collect.

Thus, FY 1998 fees may increase more than 25

percent over FY 1997 fees depending upon the

number of payment units. We are also not

suggesting that this methodology will always result

in a continuous closing of an existing gap between

costs and fees designed to recover these costs. Since

actual costs for a fee category may increase or

decrease in consecutive years, the gap could either

close or widen depending upon whether or not

actual costs go down or up and by how much.

7Certain payment unit estimates have been

revised since release of the NPRM due to additional

or updated information obtained by the

Commission. This may result in changed fee

amounts from those proposed in the NPRM. It is

important to also note that Congress’ required

revenue increase in regulatory fee payments of

approximately seven percent in FY 1998 will not

fall equally on all fee payers because payment units

have changed in several services. When the number

of payment units in a service increase from one year

to another, fees do not have to rise as much as they

would if payment units had decreased or remained

stable. Declining payment units have the opposite

effect on fees.

8One feature of the cost accounting system is that

it separately identifies direct and indirect costs.

Direct costs include salary and expenses for (a) staff

directly assigned to our operating Bureaus and

performing regulatory activities and (b) staff

assigned outside the operating Bureaus to the extent

that their time is spent performing regulatory

activities pertinent to an operating Bureau. These

costs include rent, utilities and contractual costs

attributable to such personnel. Indirect costs

include support personnel assigned to overhead

functions such as field and laboratory staff and

certain staff assigned to the Office of Managing

Director. The combining of direct and indirect costs

is accomplished on a proportional basis among all

fee categories as shown on Attachment D.

9Congress’ estimate of costs to be recovered

through regulatory fees is generally determined at

least twelve months before the end of the fiscal year

to which the fees actually apply. As such, year-end

actual activity costs will not equal exactly the

amount Congress designates for collection in a

particular fiscal year.

resulting from the application of our

revenue ceilings.5

C. The 25% Ceiling on Fees

21. After separately projecting the

revenue requirements for each service

category using data generated by our

cost accounting system, we established

a revenue ceiling no higher than 25

percent above the revenue that

regulatees would have paid if FY 1998

fees had remained at FY 1997 levels

(adjusted only for changes in volume

and the increase required by Congress).

22. SBC Communications (SBC)

argues that the 25 percent ceiling is

increasing the difference between the

fees and the costs of regulation for some

regulatees. Comcast Cellular

Communications, Inc. (Comcast) and

Small Business in Telecommunications

(SBT) argue that the 25% ceiling

unfairly results in the subsidization of

some fee payer classes by other services.

23. Capping each fee category’s

revenue requirement at no more than a

25 percent increase enables us to

continue the process of reducing fees for

services with lower costs and increasing

fees for services with higher costs in

order to close the gap between actual

costs and fees designed to recover these

costs.6 Congress in its original fee

schedule, established fee amounts for

each fee category that were to be used

until the FCC could implement an

agency-wide cost accounting system to

track costs by fee category. The

Congressional fee schedule inherently

subsidized certain services at the

expense of others. Furthermore, the

Congressional mandate to collect

significantly larger amounts in

regulatory fees each year had made it

more difficult to eliminate the

imbalances first established in the

statutory fee schedule. The full extent of

these imbalances became clear when the

Commission moved to a cost-based

system in FY 1997. Thus, for FY 1997

we adopted a ceiling on fees in order to

establish a mechanism that would

smooth the transition to cost based fees.

24. As noted in our FY 1997 Report

and Order, an important consideration

in utilizing a revenue ceiling is the

impact on other fee payers. We are

required to collect a full $162,523,000 in

FY 1998 regulatory fees. The additional

revenue that would have been collected

from licensees subject to a revenue

ceiling had there been no ceiling, needs

to be collected instead from services

where increases are less than 25%.

Utilization of the 25% ceiling permits

us to close the gap between regulatory

fees and actual costs while minimizing

the potential adverse impact of

substantial fee increases. In sum, we

believe that the public interest is best

served again by adopting the 25%

ceiling.

C. Application of Cost-Based

Methodology to Determine Fee Amounts

i. Adjustment of Payment Units

25. As the first step in calculating

individual service regulatory fees for FY

1998, we adjusted the estimated

payment units for each service because

payment units for many services have

changed substantially since we adopted

our FY 1997 fees. We obtained our

estimated payment units through a

variety of means, including our licensee

data bases, actual prior year payment

records, and industry and trade group

projections. Whenever possible, we

verified these estimates from multiple

sources to ensure the accuracy of these

estimates.7 Attachment B provides a

summary of how payment units were

determined for each fee category.

ii. Calculation of Revenue Requirements

26. We next multiplied the revised

payment units for each service by our

FY 1997 fee amounts in each fee

category to determine how much

revenue we would collect in FY 1998

without any change to the existing

Schedule of Regulatory Fees. The

amount of revenue we would collect is

approximately $171.5 million. This

amount is approximately $9 million

more than the amount the Commission

is required to collect in FY 1998. We

therefore adjusted the revenue

requirements for each fee category on a

proportional basis, consistent with

section 9(b)(2) of the Act, to obtain an

estimate of revenue requirements for

each fee category necessary to collect

the $162,523,000 amount required by

Congress for FY 1998. Attachment C

provides detailed calculations showing

how we determined the revised revenue

amount for each service.

iii. Calculation of Regulatory Costs

27. In order to utilize actual costs as

derived from our accounting system we

combined support costs and direct

costs 8 and then adjusted the results to

approximate the amount of revenue that

Congress requires us to collect in FY

1998 ($162,523,000).9 In effect, we

proportionally adjusted the actual cost

data pertaining to regulatory fee

activities recorded for the period

October 1, 1996, through September 30,

1997, (FY 1997) among all the fee

categories so that total costs

approximated $162,523,000. For fee

categories where fees are further

differentiated by sub-categories, we

distributed the revenue requirements to

each sub-category. The results of these

calculations are shown in detail in

Attachment D and represent our best

estimate of actual total attributable costs

relative to each fee category and subcategory for FY 1998. However, the fee

schedule for AM and FM radio stations

was differentiated by class of station

and population served in such a manner

as to further differentiate small stations

from larger stations.
35852 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

10 In FY 1997 we determined that the signal

contour for AM radio stations would be based upon

a calculated signal strength of 0.5 mV/m from the

transmitter location. For Class B FM stations the

contour was based upon a signal strength of 54

dBuV/m from the transmitter location and for Class

B1 FM stations the contour was based upon a signal

strength of 57 dBuV/m. For all other FM Classes,

a 60 dBuV/m contour was used. Attachment J

describes in detail the factors, measurements and

calculations that go into determining station signal

contours and associated population coverages.

11The number of stations is not exactly divisible

by 10, leaving group 10 with five less stations than

the other groups.

iv. Application of 25 Percent Revenue

Ceiling

28. We applied the 25% ceiling on the

increase in the revenue requirement of

each fee category (over and above the

Congressionally mandated increase in

the overall revenue requirement and the

difference in unit counts) using the

same methodology we described in

detail in our FY 1997 Report and Order.

v. Recalculation of Fees

29. Once we determined the amount

of fee revenue that it is necessary to

collect from each class of licensee, we

divided the revenue requirement by the

number of payment units (and by the

license term, if applicable, for ‘‘small’’

fees) to obtain actual fee amounts for

each fee category. These calculated fee

amounts were then rounded in

accordance with section 9(b)(3) of the

Act. See Attachment E.

vi. Proposed Changes to Fee Schedule

30. We examined the results of our

calculations made in paragraphs 25–27

to determine if further adjustments of

the fees and/or changes to payment

procedures were warranted based upon

the public interest and other criteria

established in 47 U.S.C. 159(b)(3). As a

result of this review, we are adopting

the following changes to our Fee

Schedule:

a. Commercial AM & FM Radio

31. In FY 1997 we revised the

methodology for assessing radio

regulatory fees, by determining each

station’s daytime protected field

strength signal contour which was then

overlaid upon U.S. Census data to

estimate the population coverage for

each station.10 Under the FY 1997

methodology, stations with larger

populations within their protected

service area were assessed higher fees

than stations with smaller populations

within their protected service area. The

FY 1997 radio regulatory fees were also

based on the ratio between the

differences in fees assessed for different

classes of stations in the Statutory Fee

Schedule. 47 U.S.C. 159(g). We will

modify these procedures to assess

regulatory fees by calculating the

populations within each station’s

narrower city strength service contour.

We anticipate that this methodology

will reduce the populations to be

considered for fee purposes to the

populations which most licensees

consider to be within their ‘‘core’’

service area. We also will increase the

differences between fee payments for

different classes of stations with

different populations, so that stations

serving larger populations would pay a

greater share of the regulatory fee

burden.

32. We received complaints from

licensees stating that the protected field

strength contours used to calculate the

fees, overstated actual market areas and

populations served. In several instances

licensees contended that rural stations

whose contours intersected major

metropolitan areas, were assigned

populations far in excess of the

populations within their primary or

even their secondary market areas. See,

for example, letters from KTXC, dated

September 10, 1997; Music Express

Broadcasting Corporation of Northeast

Ohio, dated August 28, 1997; and

Martin Broadcasting Company, dated

August 26, 1997.

33. We also received complaints from

licensees that they could not determine

how the size of their regulatory fees

were affected by their class of station,

and that there was not a sufficient

differentiation in fees between stations

serving large populations and other

stations. Several licensees argue that

stations serving smaller populations

have paid a disproportionate share of

the regulatory fees. See letter from

Heckler Broadcasting, Inc., received

October 2, 1997; and Petition for

Reduction of Regulatory Fee filed

September 18, 1997 by Family

Communications, Inc.

34. Comments filed by 19 State

Broadcaster Associations, and by the

NAB support reliance on city grade

contours, a fee schedule which

separated stations by class and

population, and a fee schedule that

increased the differentiation between

the fees paid by stations serving larger

markets and by stations serving smaller

markets. The NAB also maintained that

specifically dividing stations by class

and population will provide a greater

understanding to individual licensees

concerning how their fees were

calculated. Finally, the NAB argued that

it is inequitable to base fees on the

number of licensees who have paid their

fees in the past and, therefore, shifting

the fee payment obligation from the

number of licensees that did not pay

their fees. The NAB urges the

Commission to adopt a broadcast fee

schedule based on the total number of

operating stations, excluding only those

stations that have documented nonprofit status.

35. In part, as a response to these

concerns and comments, the NPRM

proposed to modify the fee schedule for

FY 1998 by utilizing the same general

methodology for determining regulatory

fees as we did in FY 1997, but by

increasing the strength of the applicable

signal contours to 5 mV/m for AM radio

stations and 70 dBuV/m for FM radio

stations, their city strength service

contours. The city strength signal

contours should reduce the populations

used to assess fees to the populations

within each station’s primary local

market area.

36. The FY 1998 NPRM proposed

alternative fee schedules. In the first

schedule, we determined the population

in each station’s city strength service

contours, and then multiplied each

population served by the same ratios

between the fees for individual classes

and types of stations (AM or FM), as

established in the original Statutory Fee

Schedule to determine the weighted

population for each station in the FY

1998 Fee Schedule. See 47 U.S.C.

159(g). We then proposed to combine all

of the AM and FM stations into a single

schedule. We developed a range of fees

for the schedule by selecting a

minimum fee not lower than the AM

Construction Permit fee which we

determined to be $235, and a maximum

fee which would not place an undue

burden on any licensee. Therefore, we

proposed to set the lowest radio fee at

$250, and to increase the fees in $250

increments to $2,500 for stations serving

the largest populations. We further

proposed to retain the same number of

actual fee classifications (ten) as in our

FY 1997 Report and Order.11

37. We agree with the NAB and the

State Broadcaster Associations that

separately listing AM and FM stations

by class of station, and by increasing the

burden to be paid by the stations serving

larger populations, is more equitable.

Although that schedule would depart

from the original ratios in the statutory

fee schedule, we are authorized to

modify the schedule and implement the

following schedule which is responsive

to the concerns expressed by our

licensees. 47 U.S.C. 159(b).
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35853

12 Id.

13See BellSouth WD Comments at 2.

RADIO STATION REGULATORY FEES

Population served AM class A AM class B AM class C AM class D FM classes

A, B1 & C3

FM classes

B, C, C1 &

C2

<=20,000 ........................................................................... $400 $300 $200 $250 $300 $400

20,001–50,000 .................................................................. 750 600 300 400 600 750

50,001–125,000 ................................................................ 1,250 800 400 600 800 1,250

125,001–400,000 .............................................................. 1,750 1,250 600 750 1,250 1,750

400,001–1,000,000 ........................................................... 2,500 2,000 1,000 1,250 2,000 2,500

>1,000,000 ........................................................................ 4,000 3,250 1,500 2,000 3,250 4,000

38. As can be seen from the above

chart, the same class stations in

different size cities generally have

different fees, with stations serving

larger populations paying higher fees. In

addition, different class stations in the

same city generally have different fees,

with stations which provide a higher

class of service paying higher fees. The

same class stations in the same city will

have the same fee. Thus, the adopted fee

schedule achieves the objectives of

assessing fees based on class of station

and populations served, thereby

providing a fair and equitable means of

distinguishing between stations located

in metropolitan areas and in rural areas.

39. Moreover, if a licensee believes

that it has been improperly placed in a

particular fee classification group or that

it will suffer undue financial hardship

from the fee assessment, our rules

provide for waiver, reduction or deferral

of a fee as described in § 1.1166 of our

rules. See 47 CFR 1.1166.

40. We also agree with the NAB that

the fee schedule should reflect the total

number of non-exempt operating

stations. We have identified those

licensees who have not paid their

regulatory fees and have requested that

they pay the fee or submit evidence

establishing that they have paid their fee

or are entitled to an exemption from the

regulatory fee. In addition, in

Assessment and Collection of

Regulatory Fees for Fiscal Year 1997,

FCC 97–384, adopted October 17, 1997,

we required licensees to submit

evidence of their non-profit status. For

FY 1998, we have made adjustments to

the number of licensees subject to fee

payment based on responses received

pertaining to non-profit status. Further,

for FY 1999, we will consider the

number of licensees who have paid their

fees, as adjusted to account for licensees

that have established their exempt

status, and to account for responses to

our letters requesting fee payments.

Moreover, it is our intention to follow

up on the FY 1998 fee payments to

again identify and collect fees from

those licensees that have not paid their

fees and to further adjust and perfect

our station counts.

41. The Commission will again inform

radio station licensees of their exact fee

obligation. A Public Notice listing each

station’s call letters, location,

population, and the required fee will be

mailed to each licensee. The same

information will also be available at our

internet web site (http://www.fcc.gov).

Interested parties may also obtain their

applicable fee amount for FY 1998 by

calling the FCC’s National Call Center at

1–888–225–5322. We have also

provided detailed payment information

for each radio station as Attachment L

to this Report and Order.

b. CMRS

42. In the NPRM, we proposed for FY

1998 fees of $.29 per unit for the CMRS

Mobile Service and $.04 per unit for the

CMRS Messaging Service. In addition,

we sought comment on how best to

assign the various CMRS services

between the two fee categories. For FY

1997, licensees authorized for operation

on broadband spectrum were subject to

payment of the CMRS Mobile Service

fee and licensees authorized for

operation on narrowband spectrum

were subject to payment of the CMRS

Messaging fee without regard to the

nature of the services actually offered.

We invited interested parties to

comment on our proposal to continue

the FY 1998 fee structure, and we

specifically invited comments on

whether licensees in the 900 MHZ

Specialized Mobile Radio (SMR) Service

were properly included in the CMRS

Mobile fee category. Further, we

tentatively proposed to include the

Wireless Communications Service in the

CMRS Wireless fee category.

43. Several interested parties filed

comments, in particular, concerning the

demarcation between the CMRS Mobile

and CMRS Messaging fee categories.

SBC Communications Inc. (SBC) urges

us to adopt only a single CMRS fee

covering all CMRS services contending

that both Congress and the Commission

intended in establishing SMRS to create

regulatory symmetry among the CMRS

services and, thereby, avoid any

competitive advantage to narrowband

PCS and SMR Services over Cellular

and broadband PCS.12 In contrast,

Paging Network, Inc. (Pagenet) supports

retention of the existing fee category

structure, but recommends adoption of

a subcategory for non-voice networks

and services within the CMRS Mobile

Service fee category which would be

subject to the same fee payment as

licensees within the CMRS Messaging

fee category.

44. Bell South, a provider of mobile

wireless data, supported by American

Mobile Telecommunications

Association (AMTA), suggests that 900

MHZ SMR licensees should be

classified in the CMRS Messaging Fee

category not the CMRS Mobile Services

Category. BellSouth WD argues that

regulatory fees should be governed by

how the service bands are

predominantly used. BellSouth WD

states that the Commission has allocated

5 MHz of spectrum in each geographic

region for 900 MHz SMR systems and

that, in practice, this spectrum is

licensed in 20 blocks, each consisting of

10 two-way 12.5 KHz paths, or 0.25

MHz per ten-channel block.13 Further,

Bell South contends that 900 MHz

SMRs do not have the capacity to

compete with true broadband systems,

lacking the amount of spectrum of those

services included in the CMRS Mobile

Fee category. Thus, Bell South WD

suggests that we either include any

license authorization providing 25 KHz

or less spectrum in the CMRS Messaging

Service category or that we establish a

third CMRS fee payment category for

systems that operate in the 900 MHz

SMR band and other services that are

allocated no more than 5 MHz of

spectrum. Small Business in

Telecommunications (SBT),

representing several SMR licensees,

argues that, because we classified

narrowband PCS, which operates on 50

KHz paired channels, in the CMRS
35854 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

14See FY 1997 Fees Order at paragraph 61.

15Section 25,120(d) has been renumbered to

§ 25.121(d).

Messaging Service category,14 we

should clarify that all CMRS stations

which are authorized with channel

bandwidth not exceeding 50 KHz are

within the CMRS Messaging Service

category.

45. Moreover, SBT contends that we

should clarify that SMR systems and

Public Coast stations are within the

CMRS Messaging Fees category since

these stations are authorized with

substantially less channel capacity than

narrowband PCS stations. SBT also

believes that SMR licensees, which are

small businesses should receive

discounts on their fees similar to the

discounts given to small businesses in

spectrum auctions. AMTA also supports

relief for small businesses. SBC also

contends that we incorrectly included

the Rural Radio Service and the Basic

Exchange Telecommunications Radio

Service (BETRS) in the CMRS fee

category.

46. We decline to adopt suggestions to

base our fees on the predominant use of

assigned spectrum and on a licensee by

licensee basis. We are aware of no

existing records or other information

that would permit development of a

sub-category of CMRS Mobile Services

for those CMRS licensees who use

broadband spectrum to deliver CMRS

Messaging Services. Thus, adoption of

those proposals could impose upon the

licensees themselves and our staff an

undue expenditure of administrative

resources in the course of preparing the

fee payments and processing them.

47. Furthermore, we reject SBC’s

contention that all CMRS licensees

should pay the same regulatory fee. The

statutory fee schedule makes plain that

Congress in enacting the regulatory fee

program contemplated that our fee

levels would recognize the benefit of the

spectrum authorized to licensees in the

various services. 47 U.S.C. 159(g).

Furthermore, interested parties should

note that in the past our CMRS fee

schedules have adhered to Congress’

principle that our fee categories are to

be based on the authorization provided

to a licensee rather than the use a

particular licensee makes of its

authorized spectrum. Thus, we have

considered the nature of the services

offered only to the extent that service

offered on broadband spectrum and

services offered on narrowband

spectrum are subject to different

categories of fee payment.

48. While, at this time, we lack an

adequate record to modify

classifications within the CMRS fee

category, we intend to adopt shortly a

Notice of Inquiry to seek comment on

revisiting several of our regulatory fee

categories, including CMRS. We

encourage CMRS licensees to participate

in that proceeding by submitting

comments and supporting data.

49. Finally, we did not receive any

comments opposing our tentative

conclusion that the Wireless

Communications Service (WCS) should

be classified as a CMRS Mobile Service

and, therefore, we will classify WCS as

service within the CMRS Mobile Service

fee category. Also, we agree with SBC

that § 20.7(a) of the rules excludes

licensees in the Rural Radio Service

from CMRS. Therefore, licensees in this

Service shall pay annual regulatory fees

under the category, GMRS/Other Land

Mobile. For FY 1998, the GMRS/Other

Land Mobile fee is $6 per license,

payable in advance for the entire license

term and at the time of application for

a new, modification or reinstatement

license. The total regulatory fee due is

$30 for a five-year license term.

c. Space Stations and Bearer Circuits

i. Geostationary Satellites

50. For FY 1997 and prior years, we

have adopted the statutory fee

schedule’s ‘‘per satellite’’ method for

assessment of fees upon licensees of

space stations. 47 U.S.C. 159(g). In the

NPRM, we proposed retaining this

approach. See FY 1998 NPRM,

Attachment F. Columbia asks that we

modify our methodology to take into

account the difference between

transponder and bandwidth capacity

that exists among different satellites.

Columbia states that its satellites are

limited to just twelve C-band

transponders, which, it contends, is

only about one-third the capacity of the

typical geostationary satellite. Further, it

argues that satellite operators benefit

from our regulation in close proportion

to its capacity because a satellite’s

commercial capacity dictates the benefit

it receives from our regulation, i.e., its

ability to generate income. Thus,

Columbia suggests that we base the

space station fees on the transponder

capacity of each satellite measured in 36

MHZ equivalent circuits.

51. Both GE Americom and Lorel

contend that the Commission engages in

little oversight once a satellite is

licensed and that application processing

costs should not be included in the

regulatory fee schedule. The costs

attributed to the regulation of

geostationary satellites are based on the

Commission’s cost accounting system

which separates application processing

costs from regulatory costs.

52. Finally, GE Americom and others

contend that any costs related to the

development of new services rather than

existing services should be treated as

overhead and recovered proportionately

from all fee payers. They also state that

high regulatory fees adversely affect the

U.S. satellite industry’s capability to

compete with foreign licensed

companies. We continue to believe that

it would be inappropriate to transfer

costs directly attributable to one

industry group to other unrelated

industries or groups. Benefits need not

be received or used by a particular

licensee to satisfy the ‘‘reasonably

related’’ criteria. It is enough that the

benefits are available to all. The FCC, by

statute, may only regulate costs of

domestic licensed companies and we do

not believe that our regulatory fees

substantially affect American companies

ability to compete with foreign entities.

53. After a careful review of the

arguments, we have concluded that due

to the tight collection schedule we face

at this point, as a practical matter, we

have no viable alternative other than

adoption of the fee as proposed in the

NPRM. Our action today is not intended

to prejudge any pending waiver

applications regarding these fees.

Moreover, since the calculation of

annual regulatory fees for geostationary

satellites has been a matter of dispute

for several years, we will soon issue a

Notice of Inquiry which will entertain

suggestions for alternative approaches

based on different criteria and

information. We will also ask the

satellite industry to specify the data

upon which we can base each

alternative approach and the most

feasible method for obtaining this

information.

ii. Non-Geostationary Satellites

54. In the NPRM, we proposed to

revise the fee payment requirement for

non-geostationary satellite systems by

requiring a fee payment ‘‘upon the

commencement of operation of a

system’s first satellite as reported

annually pursuant to §§ 25.142(c),

25.143(e) 25.145(g) or upon certification

of operation of a single satellite

pursuant to § 25.120(d).’’15 See NPRM at

paragarph 32. In its comments,

ORBCOMM contends that we should

recover our non-geostationary space

station regulatory costs from all nongeostationary satellite licensees rather

than only those that have launched their

initial satellites because all licensees

benefit from our policy, enforcement

and information activities and services.

55. In the past, we have not assessed

fees upon licensees of LEO systems that
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35855

16 47 U.S.C. 159(g).

17 47 U.S.C. 153(10).

18 47 U.S.C. 159(g)(3).

19See FCC 97–295 at paragraph 71, June 26, 1997.

20See 63 FR 6496 (February 9, 1997).

Amendment of the Commission’s Regulatory

Policies to Allow Non-U.S. Licensed Space Stations

to Provide Domestic and International Satellite

Service in the United States, Report and Order in

IB Docket No. 96–111, 12 FCC Rcd 24094 (1997),

62 FR 64167 (December 4, 1997).

do not operate at least one in-orbit space

station. Nevertheless, we believe that

ORBCOMM’s proposal to impose a fee

on all licensees of LEO systems warrants

consideration due to developments in

satellite technology permitting the

deployment of LEO systems containing

large numbers of satellites. However,

before further considering the proposal,

we believe an opportunity for comments

by the interested parties would be

useful. Therefore, we adopt the fee as

proposed in the NPRM. Nevertheless,

we will include ORBCOMM’s proposal

in the Notice of Inquiry we will initiate

to review various methodologies for

assessing fees in various fee categories.

This will provide an opportunity to

fully explore this proposal with input

from all affected parties.

56. Finally, we will adopt the NPRM’s

proposal to reclassify the LEO

regulatory fee category as the ‘‘Space

Stations (Non-geostationary)’’ fee

category because advances in satellite

technology have made possible medium

and high orbit satellite systems

operating in non-geostationary orbits.

See NPRM at paragraph 33.

iii. Bearer Circuits

57. For FY 1997, for the first time, we

applied the international bearer circuit

fee to satellite non-common carriers

providing international bearer circuits

to end users. See FY 1997 Report and

Order at paragraphs 66–72. Previously,

we had assessed the bearer circuit fee

only upon undersea cable operators and

domestic and international common

carriers. In the NPRM, we proposed to

again assess the bearer circuit fee on

both private and common carrier

satellite providers of international

bearer circuits to end users. See FY 1998

NPRM, Attachment F.

58. Columbia, Loral, and PanAmSat

contend that assessment of the bearer

circuit fee on private satellite providers

of international bearer circuits is

unlawful. These parties state that

section 9(g) of the Communications Act

specifically limits the assessment of the

bearer circuit fee to ‘‘carriers’’. 47 U.S.C.

159(g). Because section 3(10) of the Act

defines ‘‘carriers’’ as ‘‘common

carriers’’, they contend that we are

limited to imposing the fee only on

common carriers providing

international bearer circuits. 47 U.S.C.

153(10). In addition, according to

Columbia, the intent of Congress in

including the bearer circuit fee in its

statutory fee schedule was to assure the

recovery from common carriers of the

cost of their Title II regulation. Because

non-common carriers are not subject to

Title II regulation, Columbia argues that

imposition of the bearer circuit fee on

non-common carriers would result in

recovery of the costs of Title II

regulation from entities not subject to

our Title II jurisdiction.

59. As a separate matter, PanAmSat

states that our justification underlying

imposition of the FY 1997 bearer fee

upon non-common carrier satellite

providers was flawed because we

mistakenly believed that non-common

carrier satellite operators would offer

interconnected PSTN services in

competition with common carriers

following our elimination of the de jure

prohibition on non-common carriers for

the provision of these services. See FY

1997 Report and Order at paragraph 71.

Instead, PanAmSat contends that the

record in the pending Comsat

Dominance proceeding demonstrates

that the amount of PSTN traffic actually

carried by non-common carrier satellites

is so small as to be inconsequential from

a competitive point of view. See 60–

SAT–ISP–97. Thus, PanAmSat,

supported by Columbia and Loral,

argues that there has been no change in

our regulation of non-common carriers

to justify, pursuant to section 9(b)(3),

subjecting non-common carrier satellites

providers to a new fee. 47 U.S.C.

159(b)(3).

60. Finally, PanAmSat contends that

to assess non-common carrier satellite

operators the international bearer circuit

fee will create a competitive disparity.

PanAmSat states that under our DISCO

II policies, foreign-licensed satellites

now may be used to provide satellite

service in the United States. Foreign

satellite operators are not, however,

required to pay regulatory fees. See 12

FCC Rcd 24094 (1997). As a result, the

satellite systems against which U.S.-

licensed non-common carriers actually

compete will have a competitive

advantage solely as a result of having

used a foreign licensing administration.

In sum, PanAmSat asks that we not

impose the bearer circuit fee on noncommon carrier satellite operators in

order to avoid skewing competition in

the telecommunications markets by

unfairly discriminating against U.S.-

licensed service providers.

61. We disagree with Columbia, Loral

and PanAmSat that our assessment of

the bearer circuit regulatory fee on them

is unlawful. First, we disagree with their

assertion that the intent of Congress in

enacting section 9 of the

Communications Act, under which the

Commission is required to collect

annual regulatory fees, including the

bearer circuit fee at issue here, was to

recover the costs of regulating common

carriers under Title II of the Act. Section

9(a) clearly states that the purpose of the

regulatory fees is to recover the costs of

the Commission’s enforcement

activities, policy and rulemaking

activities, user information services and

international activities. Section 9(a)

does not mention carriers or noncarriers or impose different criteria for

each. Rather, the section requires the

Commission to collect fees designed to

recover its costs for these four general

activities and to collect those fees from

all entities that either require the

Commission to engage in those activities

or who benefit from them. As we noted

in our FY 1997 Report and Order the

Commission’s costs for Title II

regulation are recovered from the

application fees under section 8 of the

Communications Act.

62. We further disagree with the

argument of PanAmSat that our

argument for recovering bearer circuit

fees from non-carrier providers of such

circuits is flawed. We see nothing in

section 9 that would specifically exempt

non-carriers from paying fees under

section 9. While we agree that the

Schedule of Regulatory Fees included in

section 9(g) states that we should

impose bearer circuit fees upon

‘‘carriers,’’ 16 and that section 3(10) of

the Act defines ‘‘carriers’’ to mean

‘‘common carriers,’’ 17 that is not the

end of the issue. Section 9(b)(3)

empowers the Commission to amend

the Schedule of Regulatory Fees if the

Commission deems such amendment

necessary in the public interest.18 In our

1997 Report and Order we amended the

schedule of regulatory fees to impose

them upon non-carrier operators of

international satellite systems under the

terms of section 9(g)(3). The basis for

this amendment was that the non-carrier

system operators had sought and

obtained a significant expansion of the

scope of services they are permitted to

offer.19

Our DISCO II Order also allowed

them to provide unlimited domestic

service,20 thereby increasing their

permitted service areas. Because of

these changes in their operation the

non-carrier operators of international

satellite systems impose more burdens

upon the Commission’s regulatory staff

and derive a greater benefit from such

staff’s activities, particularly its

international representation functions.
35856 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

21 Federal-State Joint Board on Universal Service,

Report and Order, FCC 97–157, CC Docket No. 96– 45, 12 FCC Rcd 8776, 9206–9209 (rel. May 8, 1997)

(Universal Service Order).

We concluded, therefore, that it would

be appropriate to begin to collect

regulatory fees from such operators. 63. The commenting parties do not

directly challenge the conclusions of

our FY 1997 Report and Order. At most,

PanAmSat argues that we may have

overestimated the number of circuits

such entities interconnect to the public

switched telephone network (PSTN) and

that the number is actually

‘‘competitively inconsequential.’’ Our

decision, however, was not solely based

upon the connection of circuits to the

PSTN. The non-carrier international

satellite operators have become

substantial providers of international

private-line circuits. Such circuits are

international bearer circuits, whether or

not they are interconnected to the

PSTN. They offer substantial

competition to carrier offerings of

international bearer circuits.

Commission staff has also spent

considerable time representing noncarrier satellite operators in

international forums. Therefore, we

continue to believe that our regulation

of these entities has sufficiently changed

so that it is now appropriate for them to

contribute to the recovery of

Commission costs through payment of

the bearer circuit fee. Finally, we find

no merit in PanAmSat’s argument that

our imposition of bearer circuit fees on

U.S.-licensed satellite systems

discriminates in favor of foreign-owned

systems. Congress requires the

Commission to recover regulatory fees

from firms who are subject to the

Commission’s regulatory jurisdiction.

Foreign-licensed satellite systems do not

fall within Commission jurisdiction.

Therefore, they neither directly impose

burdens on the Commission’s staff nor

receive benefits from Commission

representation in international fora.

d. Interstate Telephone Service

Providers

64. In the NPRM, we proposed to

adopt the methodology for assessing

fees upon Interstate Telephone Service

Providers that we had employed in past

years. Under this methodology, carriers

calculate their fees based upon their

proportionate share of interstate

revenues using the methodology we

developed for contribution to the TRS

Fund. See Telecommunications Relay

Services, 8 FCC Rcd 5300 (1993).

However, in order to avoid imposing

upon resellers a double fee payment, we

permit carriers to remove from their

gross interstate revenue payments made

to underlying carriers for

telecommunications facilities and

services, including payments for

interstate access services.

65. SBC contends that our

methodology imposes an undue burden

upon the LECs because we permit

interexchange carriers (IXCs) to deduct

payments made to underlying common

carriers from their gross revenues while

local exchange carriers (LECs) do not

have such payments to deduct. SBC

suggests that use of end user revenues—

the same contribution base used for

Universal Service—to develop the

annual fees would alleviate that burden

and be more competitively neutral.

66. We find merit to SBC’s proposal

and, indeed, we have previously

recognized administrative advantages to

using end user revenues as opposed to

net revenues when assessing carrier

contributions.21 However, SBC is

mistaken in describing end user

revenues as more competitively neutral

than the mechanism we have proposed.

Assuming that all fees are recovered

from customers, including carrier

customers that purchase their service for

resale, retail customers would still pay

the same rates. Further, to the extent

that SBC provides services in

competition with other carriers, those

carriers would pay the same percentage

amounts as SBC when providing the

same services to the same customers.

Since modifying the fee basis would not

result in any material difference in the

rates that consumers pay, we cannot

conclude that the LEC’s pay an undue

share under our proposed methodology.

67. Interested parties should note that

we are adopting our net revenue

methodology as the fee basis for the

Interstate Telephone Service Providers

fee category again this year, in part,

because we do not yet have adequate

data to estimate total common carrier

interstate end user revenue for FY 1997.

While we could make such an estimate

using data available for the first half of

FY 1997 based on USF filings submitted

on September 1, 1997, we believe that

for FY 1998 we can make a better

calculation of net revenues using

historic data from regulatory fees as well

as published gross revenue data based

on TRS Fund filings. Thus, we expect to

revisit SBC’s proposal in the course of

developing our regulatory fees for FY

1999.

E. Schedule of Regulatory Fees

68. The Commission’s Schedule of

Regulatory Fees for FY 1998 is

contained in Attachment F of this

Report and Order.

F. Effect of Revenue Redistributions on

Major Constituencies

69. The chart below illustrates the

relative percentages of the revenue

requirements borne by major

constituencies since inception of

regulatory fees in FY 1994.

REVENUE REQUIREMENT PERCENTAGES BY CONSTITUENCIES

FY 1994

(actual)

FY 1995

(actual)

FY 1996

(actual)

FY 1997

(actual)

FY 1998

(proposal)

Cable TV Operators(Inc. CARS Licenses) ............................................... 41.4 24.0 33.4 21.8 18.1

Broadcast Licensees ................................................................................ 23.8 13.8 14.6 14.1 15.3

Satellite Operators (Inc. Earth Stations) ................................................... 3.3 3.6 4.0 5.0 5.0

Common Carriers ..................................................................................... 25.0 44.5 40.9 49.8 47.8

Wireless Licensees ................................................................................... 6.5 14.1 7.1 9.3 13.8

Total ................................................................................................... 100.0 100.0 100.0 100.0 100.0

G. Procedures for Payment of Regulatory

Fees

i. Installment Payments for Large Fees

70. Generally, we are retaining the

procedures that we have established for

the payment of regulatory fees. Section

9(f) requires that we permit ‘‘payment

by installments in the case of fees in

large amounts, and in the case of small

amounts, shall require the payment of

the fee in advance for a number of years

not to exceed the term of the license

held by the payer.’’ See 47 U.S.C.

159(f)(1). Consistent with section 9(f),

we are again establishing three

categories of fee payments, based upon

the category of service for which the fee

payment is due and the amount of the

fee to be paid. The fee categories are (1)
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35857

22Applicants for new, renewal and reinstatement

licenses in the following services will be required

to pay their regulatory fees in advance: Land Mobile

Services, Microwave services, Marine (Ship)

Service, Marine (Coast) Service, Private Land

Mobile (Other) Services, Aviation (Aircraft) Service,

Aviation (Ground) Service, General Mobile Radio

Service (GMRS). In addition, applicants for

Amateur Radio Vanity Call Signs will be required

to submit an advance payment.

23Cable system operators are to compute their

subscribers as follows: Number of single family

dwellings + number of individual households in

multiple dwelling unit (apartments, condominiums,

mobile home parks, etc.) paying at the basic

subscriber rate + bulk rate customers + courtesy and

free service. Note: Bulk-Rate Customers= Total

annual bulk-rate charge divided by basic annual

subscription rate for individual households. Cable

system operators may base their count on ‘‘a typical

day in the last full week’’ of December 1996, rather

than on a count as of December 31, 1996.

‘‘standard’’ fees, (2) ‘‘large’’ fees, and (3)

‘‘small’’ fees.

71. We proposed in the NPRM that

regulatees in any category of service

with a liability of $12,000 or more be

eligible to make installment payments

and that eligibility for installment

payments be based upon the amount of

either a single regulatory fee payment or

combination of fee payments by the

same licensee or regulatee. However,

statutory constraints requiring

notification to Congress prior to actual

collection of the fees prevents us from

allowing installment payments in FY

1998. The payment dates for each

regulatory fee category will be

announced by Public Notice and

published in the Federal Register

following termination of this

proceeding. However, regulatees

otherwise eligible to make installment

payments may pay their fees on the last

date that fee payments may be

submitted, as established in our Public

Notice.

ii. Annual Payments of Standard Fees

72. Standard fees are those regulatory

fees that are payable in full on an

annual basis. Payers of standard fees are

not required to make advance payments

for their full license term and are not

eligible for installment payments. As in

the past, all standard fees will be

payable in full on the date we establish

for payment of fees in their regulatory

fee category. The payment dates for each

regulatory fee category will be

announced by Public Notice and

published in the Federal Register

following termination of this

proceeding.

iii. Advance Payment of Small Fees

73. As we have in the past, we are

proposing to treat regulatory fee

payments by certain licensees as

‘‘small’’ fees subject to advance payment

consistent with the requirements of

section 9(f)(2). Advance payments will

be required from licensees of those

services that we identified would be

subject to advance payments in our FY

1994 Report and Order, and to those

additional payers set forth herein. 22

Payers of small fees must submit the

entire fee due for the full term of their

licenses when filing their initial,

renewal, or reinstatement application.

Regulatees subject to a payment of small

fees shall pay the amount due for the

current fiscal year multiplied by the

number of years in the term of their

requested license. In the event that the

required fee is adjusted following their

payment of the fee, the payer would not

be subject to the payment of a new fee

until filing an application for renewal or

reinstatement of the license. Thus,

payment for the full license term would

be made based upon the regulatory fee

applicable at the time the application is

filed. The effective date of the FY 1998

small fees will be announced by Public

Notice and published in the Federal

Register following termination of this

proceeding.

iv. Standard Fee Calculations and

Payment Dates

74. As noted, the time for payment of

standard fees will be published in the

Federal Register. For licensees,

permittees and holders of other

authorizations in the Common Carrier,

Mass Media and Cable Services, fees

should be submitted for any

authorization held as of October 1, 1997.

As in the past, this is the date to be used

for establishing liability for payment of

these fees since it is the first day of the

federal government’s fiscal year.

75. In the case of other regulatees

whose fees are based upon a subscriber,

unit or circuit count, the number of a

regulatees’ subscribers, units or circuits

on December 31, 1997, will be used to

calculate the fee payment.23 As in the

past, we have selected the last date of

the calendar year because many of these

entities file reports with us as of that

date. Others calculate their subscriber

numbers as of that date for internal

purposes. Therefore, calculation of the

regulatory fee as of that date will

facilitate both an entity’s computation of

its fee payment and our verification that

the correct fee payment has been

submitted.

v. Minimum Fee Payment Liability

76. Regulatees whose total fee liability

amounts to less than $10, including all

categories of fees for which payment is

due by an entity, are exempted from fee

payment in FY 1998.

IV. Ordering Clause

77. Accordingly, it is ordered that the

rule changes specified herein are

adopted. It is further ordered that the

rule changes made herein will become

effective 60 days from date of

publication in the Federal Register,

except that changes to the Schedule of

Regulatory Fees, made pursuant to

section 9(b)(3) of the Communications

Act, and incorporating regulatory fees

for FY 1998, will become effective

September 13, 1998, which is 90 days

from the date of notification to

Congress. Finally, it is ordered that this

proceeding is Terminated.

V. Authority and Further Information

78. This action is taken pursuant to

sections 4(i), 4(j), 9 and 303(r) of the

Communications Act of 1934, as

amended, 47 U.S.C. 154(i) and (j) and 9

and 303(r).

79. Further information about this

proceeding may be obtained by

contacting the Fees Hotline at (202)

418–0192.

List of Subjects in 47 CFR Part 1

Administrative practice and

procedure, Communications common

carriers, Radio, Telecommunications,

Television.

Federal Communications Commission.

Magalie Roman Salas,

Secretary.

Rule Changes

For the reasons discussed in the

preamble part 1 of Title 47 of the Code

of Federal Regulations is amended as

follows:

PART 1—PRACTICE AND

PROCEDURE

1. The authority citation for part 1

continues to read as follows:

Authority: 15 U.S.C. 79 et seq.; 47 U.S.C.

151, 154(i), 154 (j), 155 225, and 303(r).

2. Section 1.1152 is revised to read as

follows:

§ 1.1152 Schedule of annual regulatory

fees and filing locations for wireless radio

services.
35858 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

Exclusive use services

(per license)

Fee

amount 1 Address

1. Land Mobile (Above 470 MHz, Base Station & SMRS)(47

CFR, Part 90):

(a) 800 MHz, New, Renewal, Reinstatement (FCC 600) ..... $12.00 FCC, 800 MHz, PO Box 358235, Pittsburgh, PA 15251–5235.

(b) 900 MHz, New, Renewal, Reinstatement (FCC 600) ..... 12.00 FCC, 900 MHz, PO Box 358240, Pittsburgh, PA 15251–5240.

(c) 470–512,800,900, 220 MHz, 220 MHz Nationwide Renewal (FCC 574R, FCC 405A).12.00 FCC, 470–512, PO Box 358245, Pittsburgh, PA 15251–5245.

(d) Correspondence, Blanket Renewal, (470–

512,800,900,220 MHz) (Remittance Advice, Correspondence).

12.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

(e) 220 MHz, New, Renewal, Reinstatement (FCC 600) ..... 12.00 FCC, 220 MHz, PO Box 358360, Pittsburgh, PA 15251–5360.

(f) 470–512 MHz, New, Renewal, PO Box 358810, Reinstatement (FCC 600).12.00 FCC, 470–512, Pittsburgh, PA 15251–5810.

(g) 220 MHz Nationwide, New, Renewal, Reinstatement

(FCC 600).

12.00 FCC, Nationwide, PO Box 358820, Pittsburgh, PA 15251–5820.

2. Microwave (47 CFR Pt. 101):

(a) Microwave, New, Renewal, Reinstatement (FCC 415) ... 12.00 FCC, Microwave, PO Box 358250, Pittsburgh, PA 15251–5250.

(b) Microwave, Renewal (FCC 402R) ................................... 12.00 FCC, Microwave, PO Box 358255, Pittsburgh, PA 15251–5255.

(c) Correspondence, Blanket Renewal (Microwave) (Remittance Advice, Correspondence).12.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

3. Shared Use Services:

(a) Land Transportation (LT), New, Renewal, Reinstatement (FCC 600).6.00 FCC, Land Trans., PO Box 358215, Pittsburgh, PA 15251–

5215.

(b) Business (Bus.), New, Renewal, Reinstatement (FCC

600).

6.00 FCC, Business, PO Box 358220, Pittsburgh, PA 15251–5220.

(c) Other Industrial (OI), New, Renewal, Reinstatement

(FCC 600).

6.00 FCC, Other Indus., PO Box 358225 Pittsburgh, PA 15251–

5225.

(d) General Mobile Radio, Service (GMRS) New, Renewal,

Reinstatement (FCC 574).

6.00 FCC, GMRS, PO Box 358230, Pittsburgh, PA 15251–5230.

(e) Business, Other Industrial, Land Transportation, GMRS,

Renewal (FCC 574R, FCC 405A).

6.00 FCC, Bus., OI, LT, GMRS, PO Box 358245 Pittsburgh, PA

15251–5245.

(f) Ground, New, Renewal, Reinstatement (FCC 406) ......... 6.00 FCC, Ground, PO Box 358260, Pittsburgh, PA 15251–5260.

(g) Coast, New, Renewal, Reinstatement (FCC 503) ........... 6.00 FCC, Coast, PO Box 358265, Pittsburgh, PA 15251–5265.

(h) Ground, Renewal (FCC 452R) ........................................ 6.00 FCC, Ground, PO Box 358270, Pittsburgh, PA 15251–5270.

(i) Coast, FCC, Coast Renewal (FCC 452R) ........................ 6.00 PO Box 358270, Pittsburgh, PA 15251–5270.

(j) Ship, New, Renewal, Reinstatement (FCC 506) .............. 6.00 FCC, Ship, PO Box 358275, Pittsburgh, PA 15251–5275.

(k) Aircraft, New, Renewal, Reinstatement (FCC 404) ......... 6.00 FCC, Aircraft, PO Box 358280, Pittsburgh, PA 15251–5280.

(l) Ship, Renewal (FCC 405B) .............................................. 6.00 FCC, Ship, PO Box 358290, Pittsburgh, PA 15251–5290.

(m) Aircraft, Renewal (FCC 405B) ........................................ 6.00 FCC, Aircraft, PO Box 358290, Pittsburgh, PA 15251–5290.

(n) Correspondence, Blanket Renewal (Bus.,OI,LT,GMRS)

(Remittance Advice, Correspondence).

6.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

(o) Correspondence, Blanket Renewal (Ground) (Remittance Advice, Correspondence).6.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

(p) Correspondence, Blanket Renewal (Coast) (Remittance

Advice, Correspondence).

6.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

(q) Correspondence, Blanket Renewal (Aircraft) (Remittance Advice, Correspondence).6.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

(r) Correspondence, Blanket Renewal (Ship) (Remittance

Advice, Correspondence).

6.00 FCC, Corres., PO Box 358305, Pittsburgh, PA 15251–5305.

4. Amateur Vanity Call Signs ....................................................... 1.30 FCC, Amateur Vanity, PO Box 358924, Pittsburgh, PA 15251–

5924.

5. CMRS Mobile Services (per unit) ............................................. .29 FCC, Cellular, PO Box 358835, Pittsburgh, PA 15251–5835.

6. CMRS Messaging Services (per unit) ...................................... .04 FCC, Messaging, PO Box 358835, Pittsburgh, PA 15251–5835.

1 Note that ‘‘small fees’’ are collected in advance for the entire license term. Therefore, the annual fee amount shown in this table must be multiplied by the 5- or 10-year license term, as appropriate, to arrive at the total amount of regulatory fees owned. It should be further noted that application fees may also apply as detailed in 1.1102 of this chapter.

3. Section 1.1153 is revised to read as follows:

§ 1.1153 Schedule of annual regulatory fees and filing locations for mass media services.

Fee amount Address

I. Radio [AM and FM] (47 CFR, Part 73):

1. AM Class A

(a) <=20,000 population ................................................. 400 FCC, Radio, PO Box 358835, Pittsburgh, PA 15251–5835.

(b) 20,001–50,000 population ........................................ 750

(c) 50,001–125,000 population ...................................... 1,250

(d) 125,001–400,000 population .................................... 1,750

(e) 400,001–1,000,000 population ................................. 2,500

(f) >1,000,000 population ............................................... 4,000

2. AM Class B

(a) <=20,000 population ................................................. 300

(b) 20,001–50,000 population ........................................ 750

(c) 50,001–125,000 population ...................................... 800

(d) 125,001–400,000 population .................................... 1,250
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35859

Fee amount Address

(e) 400,001–1,000,000 population ................................. 2,000

(f) >1,000,000 population ............................................... 3,250

3. AM Class C

(a) <=20,000 population ................................................. 200

(b) 20,001–50,000 population ........................................ 300

(c) 50,001–125,000 population ...................................... 400

(d) 125,001–400,000 population .................................... 600

(e) 400,001–1,000,000 population ................................. 1,000

(f) >1,000,000 population ............................................... 1,500

4. AM Class D

(a) <=20,000 population ................................................. 250

(b) 20,001–50,000 population ........................................ 400

(c) 50,001–125,000 population ...................................... 600

(d) 125,001–400,000 population .................................... 750

(e) 400,001–1,000,000 population ................................. 1,250

(f) >1,000,000 population ............................................... 2,000

5. AM Construction Permit .................................................... 235

6. FM Classes A, B1 and C3

(a) <=20,000 population ................................................. 300

(b) 20,001–50,000 population ........................................ 600

(c) 50,001–125,000 population ...................................... 800

(d) 125,001–400,000 population .................................... 1,250

(e) 400,001–1,000,000 population ................................. 2,000

(f) >1,000,000 population ............................................... 3,250

7. FM Classes B, C, C1 and C2

(a)<=20,000 population .................................................. 400

(b) 20,001–50,000 population ........................................ 750

(c) 50,001–125,000 population ...................................... 1,250

(d) 125,001–400,000 population .................................... 1,750

(e) 400,001–1,000,000 population ................................. 2,500

(f) >,000,000 population ................................................. 4,000

8. FM Construction Permits ................................................... 1,150

II. TV (47 CFR, Part 73) VHF Commercial:

1. Markets 1 thru 10 .............................................................. 37,575 FCC, TV Branch, PO Box 358835, Pittsburgh, PA 15251–5835.

2. Markets 11 thru 25 ............................................................ 31,275

3. Markets 26 thru 50 ............................................................ 21,400

4. Markets 51 thru 100 .......................................................... 11,975

5. Remaining Markets ........................................................... 3,100

6. Construction Permits ......................................................... 2,525

III. TV (47 CFR, Part 73) UHF Commercial:

1. Markets 1 thru 10 .............................................................. 14,175 FCC, UHF

Commercial, PO Box 358835, Pittsburgh, PA 15251–5835.

2. Markets 11 thru 25 ............................................................ 10,725

3. Markets 26 thru 50 ............................................................ 6,650

4. Markets 51 thru 100 .......................................................... 3,975

5. Remaining Markets ........................................................... 1,075

6. Construction Permits ......................................................... 2,650

IV. Satellite UHF/VHF Commercial:

1. All Markets ......................................................................... 1,175 FCC Satellite TV PO Box 358835, Pittsburgh, PA 15251–5835.

2. Construction Permits ......................................................... 420

V. Low Power TV, TV/FM Translator, & TV/FM Booster (47

CFR, Part 74).

265 FCC, Low Power PO Box 358835, Pittsburgh, PA 15251–5835.

VI. Broadcast Auxiliary ................................................................. 11 FCC, Auxiliary, PO Box 358835, Pittsburgh, PA 15251–5835.

VII. Multipoint Distribution ............................................................. 260 FCC, Multipoint, PO Box 358835, Pittsburgh, PA 15251–5835.

§ 1.1154 Schedule of annual regulatory charges and filing locations for common carrier services.

Fee amount Address

I. Radio Facilities:

1. Microwave (Domestic Public Fixed) .................................. $12 FCC, Common Carrier, P.O. Box 358680, Pittsburgh, PA

15251–5680.

II. Carriers:

1. Interstate Telephone Service Providers (per dollar contributed to TRS Fund)..0011 FCC, Carriers, P.O. Box 358835, Pittsburgh, PA 15251–5680.

5. Section 1.1155 is revised to read as follows:

§ 1.1155 Schedule of regulatory fees and filing locations for cable television services.

Fee amount Address

1. Cable Antenna Relay Service .................................................. $50 FCC, Cable, P.O. Box 358835, Pittsburgh, PA 15251–5835.
35860 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

24-25U.S.C. 603.

26See 5 U.S.C. 604. The RFA, see 5 U.S.C. 601

et seq., has been amended by the Contract with

America Advancement Act (CWAAA), Pub. L. 104–

121, 110 Stat. 847 (1996). Title II of the CWAAA

is ‘‘The Small Business Regulatory Enforcement

Fairness Act of 1996’’ (SBREFA).

27 5 U.S.C. 603(b)(3).

28 Id. section 601(6).

29 5 U.S.C. 601(3) (incorporating by reference the

definition of ‘‘small business concern’’ in 15 U.S.C.

632). Pursuant to the RFA, the statutory definition

of a small business applies ‘‘unless an agency, after

consultation with the Office of Advocacy of the

Small Business Administration and after

opportunity for public comment, establishes one or

more definitions of such term which are

appropriate to the activities of the agency and

publishes such definition(s) in the Federal Register.

5 U.S.C. 601(3).

30Small Business Act, 15 U.S.C. 632 (1996).

31 5 U.S.C. 601(4).

32 1992 Economic Census, U.S. Bureau of the

Census, Table 6 (special tabulation of data under

contract to Office of Advocacy of the U.S. Small

Business Administration).

33 5 U.S.C. 601(5).

34U.S. Dept. of Commerce, Bureau of the Census,

‘‘1992 Census of Governments.’’

35 Id.

36 13 CFR 121.201, SIC code 4841.

Fee amount Address

2. Cable TV System (per subscriber) ........................................... .44

6. Section 1.1156 is revised to read as follows:

§ 1.1156 Schedule of regulatory fees and filing locations for international services.

Fee amount Address

I. Radio Facilities:

1. International (HF) Broadcast ............................................. $475 FCC, International, P.O. Box 358835, Pittsburgh, PA 15251–

5835.

2. International Public Fixed .................................................. 375 FCC, International, P.O. Box 358835, Pittsburgh, PA 15251–

5835.

II. Space Stations (Geostationary Orbit) ...................................... 119,000 FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 15251–

5835.

III. Space Stations (Non-Geostationary Orbit) .............................. 164,800 FCC, Space Stations, P.O. Box 358835, Pittsburgh, PA 15251–

5835.

IV. Earth Stations, Transmit/Receive & Transmit Only (per authorization or registration).165 FCC, Earth Station, P.O. Box 358835, Pittsburgh, PA 15251–

5835.

V. Carriers:

1. International Bearer Circuits (per active 64KB circuit or

equivalent).

6.00 FCC, International, P.O. Box 358835, Pittsburgh, PA 15251–

5835.

Attachment A—Final Regulatory

Flexibility Analysis

1. As required by the Regulatory

Flexibility Act (RFA),24-25 an Initial

Regulatory Flexibility Analysis (IRFA)

was incorporated in the Notice of

Proposed Rulemaking In the Matter of

Assessment and Collection of

Regulatory Fees for Fiscal Year 1998, 63

FR 16188 (April 2, 1998). The

Commission sought written public

comments on the proposals in its FY

1998 regulatory fees NPRM, including

on the IRFA. This present Final

Regulatory Flexibility Analysis (FRFA)

conforms to the RFA, as amended.26

I. Need for and Objectives of this Report

and Order

2. This rulemaking proceeding was

initiated in order to collect regulatory

fees in the amount of $162,523,000, the

amount that Congress has required the

Commission to recover through

regulatory fees in FY 1998. The

Commission seeks to collect the

necessary amount through its revised

regulatory fees, as contained in the

attached Schedule of Regulatory Fees, in

the most efficient manner possible and

without undue burden on the public.

II. Summary of Significant Issues

Raised by Public Comments in

Response to the IRFA

3. None.

III. Description and Estimate of the

Number of Small Entities to Which the

Rules will Apply

4. The RFA directs agencies to

provide a description of and, where

feasible, an estimate of the number of

small entities that may be affected by

the proposed rules, if adopted.27 The

RFA generally defines the term ‘‘small

entity’’ as having the same meaning as

the terms ‘‘small business,’’ ‘‘small

organization,’’ and ‘‘small governmental

jurisdiction.’’ 28 In addition, the term

‘‘small business’’ has the same meaning

as the term ‘‘small business concern’’

under the Small Business Act.29 A small

business concern is one which: (1) Is

independently owned and operated; (2)

is not dominant in its field of operation;

and (3) satisfies any additional criteria

established by the Small Business

Administration (SBA).30 A small

organization is generally ‘‘any not-forprofit enterprise which is independently

owned and operated and is not

dominant in its field.’’ 31 Nationwide, as

of 1992, there were approximately

275,801 small organizations.32 ‘‘Small

governmental jurisdiction’’ generally

means ‘‘governments of cities, counties,

towns, townships, villages, school

districts, or special districts, with a

population of less than 50,000.’’ 33 As of

1992, there were approximately 85,006

such jurisdictions in the United

States.34 This number includes 38,978

counties, cities, and towns; of these,

37,566, or 96 percent, have populations

of fewer than 50,000.35 The Census

Bureau estimates that this ratio is

approximately accurate for all

governmental entities. Thus, of the

85,006 governmental entities, we

estimate that 81,600 (91 percent) are

small entities. Below, we further

describe and estimate the number of

small entity licensees and regulatees

that may be affected by the proposed

rules, if adopted.

Cable Services or Systems

5. The SBA has developed a

definition of small entities for cable and

other pay television services, which

includes all such companies generating

$11 million or less in revenue

annually.36 This definition includes

cable systems operators, closed circuit

television services, direct broadcast

satellite services, multipoint

distribution systems, satellite master

antenna systems and subscription

television services. According to the

Census Bureau data from 1992, there

were 1,788 total cable and other pay
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35861

37 1992 Economic Census Industry and Enterprise

Receipts Size Report, Table 2D, SIC code 4841 (U.S.

Bureau of the Census data under contract to the

Office of Advocacy of the U.S. Small Business

Administration).

38 47 CFR 76.901(e). The Commission developed

this definition based on its determination that a

small cable system operator is one with annual

revenues of $100 million or less. Implementation of

Sections of the 1992 Cable Act: Rate Regulation,

Sixth Report and Order and Eleventh Order on

Reconsideration, 10 FCC Rcd 7393 (1995), 60 FR

10534 (February 27, 1995).

39Paul Kagan Associates, Inc., Cable TV Investor,

Feb. 29, 1996 (based on figures for December 30,

1995).

40 47 U.S.C. 543(m)(2).

41 Id. 76.1403(b).

42Paul Kagan Associates, Inc., Cable TV Investor,

Feb. 29, 1996 (based on figures for Dec. 30, 1995).

43We do receive such information on a case-bycase basis only if a cable operator appeals a local

franchise authority’s finding that the operator does

not qualify as a small cable operator pursuant to

section 76.1403(b) of the Commission’s rules See 47

CFR 76.1043(d).

44 Direct Broadcast Services (DBS) are discussed

with the international services, infra.

45Multipoint Distribution Services (MDS) are

discussed with the mass media services, infra.

46FCC, Telecommunications Industry Revenue:

TRS Fund Worksheet Data, Figure 2 (Number of

Carriers Paying Into the TRS Fund by Type of

Carrier) (Nov. 1997) (Telecommunications Industry

Revenue).

47 Id.

48 13 CFR 121.201, Standard Industrial

Classification (SIC) codes 4812 and 4813. See also

Executive Office of the President, Office of

Management and Budget, Standard Industrial

Classification Manual 1987).

49See 13 CFR 121.201, SIC code 4813. Since the

time of the Commission’s 1996 decision,

Implementation of the Local Competition Provisions

in the Telecommunications Act of 1996, First

Report and Order, 11 FCC Rcd 15499, 16144–45

(1996), 61 FR 45476 (August 29, 1996), the

Commission has consistently addressed in its

regulatory flexibility analyses the impact of its rules

on such ILECs.

50U.S. Department of Commerce, Bureau of the

Census, 1992 Census of Transportation,

Communications, and Utilities: Establishment and

Firm Size, at Firm Size 1–123 (1995) (1992 Census).

51See generally 15 U.S.C. 632(a)(1).

television services and 1,423 had less

than $11 million in revenue.37

6. The Commission has developed its

own definition of a small cable system

operator for the purposes of rate

regulation. Under the Commission’s

rules, a ‘‘small cable company’’ is one

serving fewer than 400,000 subscribers

nationwide.38 Based on our most recent

information, we estimate that there were

1,439 cable operators that qualified as

small cable system operators at the end

of 1995.39 Since then, some of those

companies may have grown to serve

over 400,000 subscribers, and others

may have been involved in transactions

that caused them to be combined with

other cable operators. Consequently, we

estimate that there are fewer than 1,439

small entity cable system operators.

7. The Communications Act also

contains a definition of a small cable

system operator, which is ‘‘a cable

operator that, directly or through an

affiliate, serves in the aggregate fewer

than 1 percent of all subscribers in the

United States and is not affiliated with

any entity or entities whose gross

annual revenues in the aggregate exceed

$250,000,000.’’ 40 The Commission has

determined that there are 66,000,000

subscribers in the United States.

Therefore, we found that an operator

serving fewer than 660,000 subscribers

shall be deemed a small operator, if its

annual revenues, when combined with

the total annual revenues of all of its

affiliates, do not exceed $250 million in

the aggregate.41 Based on available data,

we find that the number of cable

operators serving 660,000 subscribers or

less totals 1,450.42 We do not request

nor do we collect information

concerning whether cable system

operators are affiliated with entities

whose gross annual revenues exceed

$250,000,000,43 and thus are unable at

this time to estimate with greater

precision the number of cable system

operators that would qualify as small

cable operators under the definition in

the Communications Act. It should be

further noted that recent industry

estimates project that there will be a

total 66,000,000 subscribers, and we

have based our fee revenue estimates on

that figure.

8. Other Pay Services. Other pay

television services are also classified

under Standard Industrial Classification

(SIC) 4841, which includes cable

systems operators, closed circuit

television services, direct broadcast

satellite services (DBS),44 multipoint

distribution systems (MDS),45 satellite

master antenna systems (SMATV), and

subscription television services.

Common Carrier Services and Related

Entities

9. The most reliable source of

information regarding the total numbers

of certain common carrier and related

providers nationwide, as well as the

numbers of commercial wireless

entities, appears to be data the

Commission publishes annually in its

Telecommunications Industry Revenue

report, regarding the

Telecommunications Relay Service

(TRS).46 According to data in the most

recent report, there are 3,459 interstate

carriers.47 These carriers include, inter

alia, local exchange carriers, wireline

carriers and service providers,

interexchange carriers, competitive

access providers, operator service

providers, pay telephone operators,

providers of telephone toll service,

providers of telephone exchange

service, and resellers.

10. The SBA has defined

establishments engaged in providing

‘‘Radiotelephone Communications’’ and

‘‘Telephone Communications, Except

Radiotelephone’’ to be small businesses

when they have no more than 1,500

employees.48 Below, we discuss the

total estimated number of telephone

companies falling within the two

categories and the number of small

businesses in each, and we then attempt

to refine further those estimates to

correspond with the categories of

telephone companies that are commonly

used under our rules.

11. Although some affected

incumbent local exchange carriers

(ILECs) may have 1,500 or fewer

employees, we do not believe that such

entities should be considered small

entities within the meaning of the RFA

because they are either dominant in

their field of operations or are not

independently owned and operated, and

therefore by definition not ‘‘small

entities’’ or ‘‘small business concerns’’

under the RFA. Accordingly, our use of

the terms ‘‘small entities’’ and ‘‘small

businesses’’ does not encompass small

ILECs. Out of an abundance of caution,

however, for regulatory flexibility

analysis purposes, we will separately

consider small ILECs within this

analysis and use the term ‘‘small ILECs’’

to refer to any ILECs that arguably might

be defined by the SBA as ‘‘small

business concerns.’’ 49

12. Total Number of Telephone

Companies Affected. The U.S. Bureau of

the Census (‘‘Census Bureau’’) reports

that, at the end of 1992, there were

3,497 firms engaged in providing

telephone services, as defined therein,

for at least one year.50 This number

contains a variety of different categories

of carriers, including local exchange

carriers, interexchange carriers,

competitive access providers, cellular

carriers, mobile service carriers,

operator service providers, pay

telephone operators, personal

communications services providers,

covered specialized mobile radio

providers, and resellers. It seems certain

that some of those 3,497 telephone

service firms may not qualify as small

entities or small ILECs because they are

not ‘‘independently owned and

operated.’’ 51 For example, a PCS

provider that is affiliated with an

interexchange carrier having more than

1,500 employees would not meet the

definition of a small business. It is

reasonable to conclude that fewer than

3,497 telephone service firms are small

entity telephone service firms or small
35862 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

52 1992 Census, supra, at Firm Size 1–123.

53 13 CFR 121.201, SIC code 4813.

54 Id.

55Telecommunications Industry Revenue, Figure

2.

56 13 CFR 121.201, SIC code 4813.

57Telecommunications Industry Revenue, Figure

2.

58 13 CFR 121.201, SIC code 4813.

59Telecommunications Industry Revenue, Figure

2.

60 13 CFR 121.201, SIC code 4813.

61Telecommunications Industry Revenue, Figure

2.

62 13 CFR 121.201, SIC code 4813.

63Telecommunications Industry Revenue, Figure

2.

64 13 CFR 121.201, SIC code 4813.

65Telecommunications Industry Revenue, Figure

2.

ILECs that may be affected by the

proposed rules, if adopted.

13. Wireline Carriers and Service

Providers. The SBA has developed a

definition of small entities for telephone

communications companies except

radiotelephone (wireless) companies.

The Census Bureau reports that there

were 2,321 such telephone companies

in operation for at least one year at the

end of 1992.52 According to the SBA’s

definition, a small business telephone

company other than a radiotelephone

company is one employing no more

than 1,500 persons.53 All but 26 of the

2,321 non-radiotelephone companies

listed by the Census Bureau were

reported to have fewer than 1,000

employees. Thus, even if all 26 of those

companies had more than 1,500

employees, there would still be 2,295

non-radiotelephone companies that

might qualify as small entities or small

ILECs. We do not have data specifying

the number of these carriers that are not

independently owned and operated, and

thus are unable at this time to estimate

with greater precision the number of

wireline carriers and service providers

that would qualify as small business

concerns under the SBA’s definition.

Consequently, we estimate that fewer

than 2,295 small telephone

communications companies other than

radiotelephone companies are small

entities or small ILECs that may be

affected by the proposed rules, if

adopted.

14. Local Exchange Carriers. Neither

the Commission nor the SBA has

developed a definition for small

providers of local exchange services

(LECs). The closest applicable definition

under the SBA rules is for telephone

communications companies other than

radiotelephone (wireless) companies.54

According to the most recent

Telecommunications Industry Revenue

data, 1,371 carriers reported that they

were engaged in the provision of local

exchange services.55 We do not have

data specifying the number of these

carriers that are either dominant in their

field of operations, are not

independently owned and operated, or

have more than 1,500 employees, and

thus are unable at this time to estimate

with greater precision the number of

LECs that would qualify as small

business concerns under the SBA’s

definition. Consequently, we estimate

that fewer than 1,371 providers of local

exchange service are small entities or

small ILECs that may be affected by the

proposed rules, if adopted.

15. Interexchange Carriers. Neither

the Commission nor the SBA has

developed a definition of small entities

specifically applicable to providers of

interexchange services (IXCs). The

closest applicable definition under the

SBA rules is for telephone

communications companies other than

radiotelephone (wireless) companies.56

According to the most recent

Telecommunications Industry Revenue

data, 143 carriers reported that they

were engaged in the provision of

interexchange services.57 We do not

have data specifying the number of

these carriers that are not independently

owned and operated or have more than

1,500 employees, and thus are unable at

this time to estimate with greater

precision the number of IXCs that

would qualify as small business

concerns under the SBA’s definition.

Consequently, we estimate that there are

fewer than 143 small entity IXCs that

may be affected by the proposed rules,

if adopted.

16. Competitive Access Providers.

Neither the Commission nor the SBA

has developed a definition of small

entities specifically applicable to

competitive access services providers

(CAPs). The closest applicable

definition under the SBA rules is for

telephone communications companies

other than except radiotelephone

(wireless) companies.58 According to

the most recent Telecommunications

Industry Revenue data, 109 carriers

reported that they were engaged in the

provision of competitive access

services.59 We do not have data

specifying the number of these carriers

that are not independently owned and

operated, or have more than 1,500

employees, and thus are unable at this

time to estimate with greater precision

the number of CAPs that would qualify

as small business concerns under the

SBA’s definition. Consequently, we

estimate that there are fewer than 109

small entity CAPs that may be affected

by the proposed rules, if adopted.

17. Operator Service Providers.

Neither the Commission nor the SBA

has developed a definition of small

entities specifically applicable to

providers of operator services. The

closest applicable definition under the

SBA rules is for telephone

communications companies other than

radiotelephone (wireless) companies.60

According to the most recent

Telecommunications Industry Revenue

data, 27 carriers reported that they were

engaged in the provision of operator

services.61 We do not have data

specifying the number of these carriers

that are not independently owned and

operated or have more than 1,500

employees, and thus are unable at this

time to estimate with greater precision

the number of operator service

providers that would qualify as small

business concerns under the SBA’s

definition. Consequently, we estimate

that there are fewer than 27 small entity

operator service providers that may be

affected by the proposed rules, if

adopted.

18. Pay Telephone Operators. Neither

the Commission nor the SBA has

developed a definition of small entities

specifically applicable to pay telephone

operators. The closest applicable

definition under SBA rules is for

telephone communications companies

other than radiotelephone (wireless)

companies.62 According to the most

recent Telecommunications Industry

Revenue data, 441 carriers reported that

they were engaged in the provision of

pay telephone services.63 We do not

have data specifying the number of

these carriers that are not independently

owned and operated or have more than

1,500 employees, and thus are unable at

this time to estimate with greater

precision the number of pay telephone

operators that would qualify as small

business concerns under the SBA’s

definition. Consequently, we estimate

that there are fewer than 441 small

entity pay telephone operators that may

be affected by the proposed rules, if

adopted.

19. Resellers (including debit card

providers). Neither the Commission nor

the SBA has developed a definition of

small entities specifically applicable to

resellers. The closest applicable SBA

definition for a reseller is a telephone

communications company other than

radiotelephone (wireless) companies.64

According to the most recent

Telecommunications Industry Revenue

data, 339 reported that they were

engaged in the resale of telephone

service.65 We do not have data

specifying the number of these carriers

that are not independently owned and
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35863

66We include all toll-free number subscribers in

this category, including 888 numbers.

67FCC, CCB Industry Analysis Division, FCC

Releases, Study on Telephone Trends, Tbl. 20 (May

16, 1996).

68FCC, CCB Industry Analysis Division, Long

Distance Carrier Code Assignments, p. 80, Tbl. 10B

(Oct. 18, 1996).

69An exception is the Direct Broadcast Satellite

(DBS) Service, infra.

70 13 CFR 120.121, SIC code 4899.

71 1992 Economic Census Industry and Enterprise

Receipts Size Report, Table 2D, SIC code 4899 (U.S.

Bureau of the Census data under contract to the

Office of Advocacy of the U.S. Small Business

Administration).

72 13 CFR 120.121, SIC code 4841.

73 13 CFR 120.201, SIC code 4841.

74While we tentatively believe that the SBA’s

definition of ‘‘small business’’ greatly overstates the

Continued

operated or have more than 1,500

employees, and thus are unable at this

time to estimate with greater precision

the number of resellers that would

qualify as small business concerns

under the SBA’s definition.

Consequently, we estimate that there are

fewer than 339 small entity resellers

that may be affected by the proposed

rules, if adopted.

20. 800 Service Subscribers.66 Neither

the Commission nor the SBA has

developed a definition of small entities

specifically applicable to 800 service

(‘‘toll free’’) subscribers. The most

reliable source of information regarding

the number of 800 service subscribers

appears to be data the Commission

collects on the 800 numbers in use.67

According to our most recent data, at

the end of 1995, the number of 800

numbers in use was 6,987,063.

Similarly, the most reliable source of

information regarding the number of

888 service subscribers appears to be

data the Commission collects on the 888

numbers in use.68 According to our

most recent data, at the end of August

1996, the number of 888 numbers that

had been assigned was 2,014,059. We do

not have data specifying the number of

these subscribers that are not

independently owned and operated or

have more than 1,500 employees, and

thus are unable at this time to estimate

with greater precision the number of toll

free subscribers that would qualify as

small business concerns under the

SBA’s definition. Consequently, we

estimate that there are fewer than

6,987,063 small entity 800 subscribers

and fewer than 2,014,059 small entity

888 subscribers that may be affected by

the proposed rules, if adopted.

International Services

21. The Commission has not

developed a definition of small entities

applicable to licensees in the

international services. Therefore, the

applicable definition of small entity is

generally the definition under the SBA

rules applicable to Communications

Services, Not Elsewhere Classified

(NEC).69 This definition provides that a

small entity is expressed as one with

$11.0 million or less in annual

receipts.70 According to the Census

Bureau, there were a total of 848

communications services providers,

NEC, in operation in 1992, and a total

of 775 had annual receipts of less than

$9,999 million.71 The Census report

does not provide more precise data.

22. International Broadcast Stations.

Commission records show that there are

20 international broadcast station

licensees. We do not request nor collect

annual revenue information, and thus

are unable to estimate the number of

international broadcast licensees that

would constitute a small business under

the SBA definition. However, the

Commission estimates that only six

international broadcast stations are

subject to regulatory fee payments.

23. International Public Fixed Radio

(Public and Control Stations). There are

3 licensees in this service subject to

payment of regulatory fees. We do not

request nor collect annual revenue

information, and thus are unable to

estimate the number of international

broadcast licensees that would

constitute a small business under the

SBA definition.

24. Fixed Satellite Transmit/Receive

Earth Stations. There are approximately

3000 earth station authorizations, a

portion of which are Fixed Satellite

Transmit/Receive Earth Stations. We do

not request nor collect annual revenue

information, and thus are unable to

estimate the number of the earth

stations that would constitute a small

business under the SBA definition.

25. Fixed Satellite Small Transmit/

Receive Earth Stations. There are 3000

earth station authorizations, a portion of

which are Fixed Satellite Small

Transmit/Receive Earth Stations. We do

not request nor collect annual revenue

information, and thus are unable to

estimate the number of fixed satellite

transmit/receive earth stations may

constitute a small business under the

SBA definition.

26. Fixed Satellite Very Small

Aperture Terminal (VSAT) Systems.

These stations operate on a primary

basis, and frequency coordination with

terrestrial microwave systems is not

required. Thus, a single ‘‘blanket’’

application may be filed for a specified

number of small antennas and one or

more hub stations. The Commission has

processed 377 applications. We do not

request nor collect annual revenue

information, and thus are unable to

estimate of the number of VSAT systems

that would constitute a small business

under the SBA definition.

27. Mobile Satellite Earth Stations.

There are two licensees. We do not

request nor collect annual revenue

information, and thus are unable to

estimate of the number of mobile

satellite earth stations that would

constitute a small business under the

SBA definition.

28. Radio Determination Satellite

Earth Stations. There are four licensees.

We do not request nor collect annual

revenue information, and thus are

unable to estimate of the number of

radio determination satellite earth

stations that would constitute a small

business under the SBA definition.

29. Space Stations (Geostationary).

Commission records reveal that there

are 46 space station licensees. We do

not request nor collect annual revenue

information, and thus are unable to

estimate of the number of geostationary

space stations that would constitute a

small business under the SBA

definition.

30. Space Stations (NonGeostationary). There are six NonGeostationary Space Station licensees,

of which only two systems are

operational. We do not request nor

collect annual revenue information, and

thus are unable to estimate of the

number of non-geostationary space

stations that would constitute a small

business under the SBA definition.

31. Direct Broadcast Satellites.

Because DBS provides subscription

services, DBS falls within the SBArecognized definition of ‘‘Cable and

Other Pay Television Services.’’ 72 This

definition provides that a small entity is

one with $11.0 million or less in annual

receipts.73 As of December 1996, there

were eight DBS licensees. However, the

Commission does not collect annual

revenue data for DBS and, therefore, is

unable to ascertain the number of small

DBS licensees that could be impacted by

these proposed rules. Although DBS

service requires a great investment of

capital for operation, there are several

new entrants in this field that may not

yet have generated $11 million in

annual receipts, and therefore may be

categorized as small businesses, if

independently owned and operated.

Mass Media Services

32. Commercial Radio and Television

Services. The proposed rules and

policies will apply to television

broadcasting licensees and radio

broadcasting licensees.74 The SBA
35864 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

number of radio and television broadcast stations

that are small businesses and is not suitable for

purposes of determining the impact of the proposals

on small television and radio stations, for purposes

of this Report and Order we utilize the SBA’s

definition in determining the number of small

businesses to which the proposed rules would

apply. We reserve the right to adopt, in the future,

a more suitable definition of ‘‘small business’’ as

applied to radio and television broadcast stations or

other entities subject to the proposed rules in this

Report and Order, and to consider further the issue

of the number of small entities that are radio and

television broadcasters or other small media

entities. See Report and Order in MM Docket No.

93–48 (Children’s Television Programming), 11 FCC

Rcd 10660, 10737–38 (1996), 61 FR 43981 (August

27, 1996), citing 5 U.S.C. 601(3).

75 13 CFR 120.201, SIC code 4833.

76Economics and Statistics Administration,

Bureau of Census, U.S. Department of Commerce,

1992 Census of Transportation, Communications

and Utilities, Establishment and Firm Size, Series

UC92–S–1, Appendix A–9 (1995) 1992 Census,

Series UC92–S–1).

77 Id.; see Executive Office of the President, Office

of Management and Budget, Standard Industrial

Classification Manual (1987), at 283, which

describes ‘‘Television Broadcasting Stations’’ (SIC

code 4833) as:

Establishments primarily engaged in broadcasting

visual programs by television to the public, except

cable and other pay television services. Included in

this industry are commercial, religious, educational

and other television stations. Also included here are

establishments primarily engaged in television

broadcasting and which produce taped television

program materials.

78 1992 Census, Series UC92–S–1, at Appendix A–

9.

79 Id., SIC code 7812 (Motion Picture and Video

Tape Production); SIC code 7922 (Theatrical

Producers and Miscellaneous Theatrical Services)

(producers of live radio and television programs).

80FCC News Release No. 31327 (Jan. 13, 1993);

1992 Census, Series UC92–S–1, at Appendix A–9.

81FCC News Release, ‘‘Broadcast Station Totals as

of December 31, 1997.’’

82A census to determine the estimated number of

Communications establishments is performed every

five years, in years ending with a ‘‘2’’ or ‘‘7’’. See

1992 Census, Series UC92–S–1, at III.

83The amount of $10 million was used to

estimate the number of small business

establishments because the relevant Census

categories stopped at $9,999,999 and began at

$10,000,000. No category for $10.5 million existed.

Thus, the number is as accurate as it is possible to

calculate with the available information.

84 13 CFR 120.201, SIC code 4832.

85 1992 Census, Series UC92–S–1, at Appendix A–

9.

86 Id.

87 Id.

88 Id.

89The Census Bureau counts radio stations

located at the same facility as one establishment.

Therefore, each co-located AM/FM combination

counts as one establishment.

90FCC News Release, No. 31327 (Jan. 13, 1993).

91FCC News Releases, ‘‘Broadcast Station Totals

as of December 31, 1997.’’

92We use the 77 percent figure of TV stations

operating at less than $10 million for 1992 and

apply if to be 1997 total of 1558 TV stations to

arrive at 1,200 stations categorized as small

businesses.

93We use the 96% figure of radio station

establishments with less than $5 million revenue

from the Census data and apply it to the 12,088

individual station count to arrive at 11,605

individual stations as small businesses.

94FCC News Release, No. 7033 (Mar. 6, 1997).

95The Commission’s definition of a small

broadcast station for purposes of applying its EEO

rules was adopted prior to the requirements of

approval by the SBA pursuant to section 3(a) of the

Small Business Act, 15 U.S.C. 632(a), as amended

by section 222 of the Small Business Credit and

Business Opportunity Enhancement Act of 1992,

Pub. L. 102–366, 222(b)(1), 106 Stat. 999 (1992), as

further amended by the Small Business

Administration Reauthorization and Amendments

Act of 1994, Pub. L. 103–403, 301, 108 Stat. 4187

(1994). However, this definition was adopted after

public notice and the opportunity for comment. See

Report and Order in Docket No. 18244, 23 FCC 2d

430 (1970), 35 8925 (June 6, 1970).

96See, e.g., 47 CFR 73.3612 (Requirements to file

annual employment reports on Forms 395 applies

to licensees with five or more full-time employees);

First Report and Order in Docket No. 21474

(Amendment of Broadcast Equal Employment

Opportunity Rules and FCC Form 395), 70 FCC 2d

1466 (1979), 50 FR 50329 (December 10, 1085). The

Commission is currently considering how to

decrease the administrative burdens imposed by the

EEO rule on small stations while maintaining the

effectiveness of our broadcast EEO enforcement.

Order and Notice of Proposed Rule Making in MM

Docket N0. 96–16 (Streamlining Broadcast EEO

Rule and Policies, Vacating the EEO Forfeiture

Policy Statement and Amending Section 1.80 of the

Commission’s Rules to Include EEO Forfeiture

Guidelines), 11 FCC Rcd 5154 (1996), 61 FR 9964

(March 12, 1996). One option under consideration

is whether to define a small station for purposes of

affording such relief as one with ten or fewer fulltime employees.

97Compilation of 1994 Broadcast Station Annual

Employment Reports (FCC Form B), Equal

Opportunity Employment Branch, Mass Media

Bureau, FCC.

defines a television broadcasting station

that has $10.5 million or less in annual

receipts as a small business.75

Television broadcasting stations consist

of establishments primarily engaged in

broadcasting visual programs by

television to the public, except cable

and other pay television services.76

Included in this industry are

commercial, religious, educational, and

other television stations.77 Also

included are establishments primarily

engaged in television broadcasting and

which produce taped television program

materials.78 Separate establishments

primarily engaged in producing taped

television program materials are

classified under another SIC number.79

There were 1,509 television stations

operating in the nation in 1992.80 That

number has remained fairly constant as

indicated by the approximately 1,564

operating television broadcasting

stations in the nation as of December 31,

1997.81 For 1992,82 the number of

television stations that produced less

than $10.0 million in revenue was 1,155

establishments.83 Only commercial

stations are subject to regulatory fees.

33. Additionally, the Small Business

Administration defines a radio

broadcasting station that has $5 million

or less in annual receipts as a small

business.84 A radio broadcasting station

is an establishment primarily engaged in

broadcasting aural programs by radio to

the public.85 Included in this industry

are commercial, religious, educational,

and other radio stations.86 Radio

broadcasting stations which primarily

are engaged in radio broadcasting and

which produce radio program materials

are similarly included.87 However, radio

stations which are separate

establishments and are primarily

engaged in producing radio program

material are classified under another

SIC number.88 The 1992 Census

indicates that 96 percent (5,861 of

6,127) radio station establishments

produced less than $5 million in

revenue in 1992.89 Official Commission

records indicate that 11,334 individual

radio stations were operating in 1992.90

As of December 31, 1997, Commission

records indicate that 12,27 radio

stations were operating, of which 7,465

were FM stations.91 Only commercial

stations are subject to regulatory fees.

34. Thus, the proposed rules, if

adopted, will affect approximately 1,558

full power television stations,

approximately 1,200 of which are

considered small businesses.92

Additionally, the proposed rules will

affect some 12,156 full power radio

stations, approximately 11,670 of which

are small businesses.93 These estimates

may overstate the number of small

entities because the revenue figures on

which they are based do not include or

aggregate revenues from non-television

or non-radio affiliated companies. There

are also 1,952 low power television

stations (LPTV).94 Given the nature of

this service, we will presume that all

LPTV licensees qualify as small entities

under the SBA definition.

Alternative Classification of Small

Stations

35. An alternative way to classify

small radio and television stations is by

number of employees. The Commission

currently applies a standard based on

the number of employees in

administering its Equal Employment

Opportunity Rule (EEO) for

broadcasting.95 Thus, radio or television

stations with fewer than five full-time

employees are exempted from certain

EEO reporting and record keeping

requirements.96 We estimate that the

total number of broadcast stations with

4 or fewer employees is approximately

4,239.97

Auxiliary, Special Broadcast and Other

Program Distribution Services

36. This service involves a variety of

transmitters, generally used to relay

broadcast programming to the public

(through translator and booster stations)
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35865

9813 CFR 121.201, SIC code 4832.

99FCC News Release, Broadcast Station Totals as

of December 31, 1996, No. 71831 (Jan. 21, 1997).

100 15 U.S.C. 632.

101For purposes of this item, MDC includes both

the single channel Multipoint Distribution Service

(MDS) and the Multichannel Multipoint

Distribution Service (MMDS).

102See 47 CFR 1,2110 (a)(1).

103Amendment of Part 21 and 74 of the

Commission’s Rules with Regard to Filing

Procedures in the Multipoint Distribution Service

and in the Instructional Television Fixed Service

and Implementation of Section 309(j) of the

Communications Act-Competitive Bidding, 10 FCC

Rcd 9589 (1995), 60 FR 36524 (July 17, 1995).

104 Id. A Basic Trading Area (BTA) is the

geographic area by which the Multipoint

Distribution Service is licensed. See Rand McNally

1992 Commercial Atlas and Marketing Guide, 123rd

Edition, pp. 36–39.

10513 CFR 121.291, SIC code 4812.

1061992 Census, Series UC92–S–1, at Table 5, SIC

code 4812.

107Telecommunications Industry Revenue, Figure

2.

108 13 CFR 121.201, SIC code 4812.

109 13 CFR 121.201, SIC code 4812.

110Telecommunications Industry Revenue, Figure

2.

or within the program distribution chain

(from a remote news gathering unit back

to the station). The Commission has not

developed a definition of small entities

applicable to broadcast auxiliary

licensees. Therefore, the applicable

definitions of small entities are those,

noted previously, under the SBA rules

applicable to radio broadcasting stations

and television broadcasting stations.98

37. There are currently 2,720 FM

translators and boosters, 4,952 TV

translators.99 The FCC does not collect

financial information on any broadcast

facility and the Department of

Commerce does not collect financial

information on these auxiliary broadcast

facilities. We believe, however, that

most, if not all, of these auxiliary

facilities could be classified as small

businesses by themselves. We also

recognize that most translators and

boosters are owned by a parent station

which, in some cases, would be covered

by the revenue definition of small

business entity discussed above. These

stations would likely have annual

revenues that exceed the SBA maximum

to be designated as a small business

(either $5 million for a radio station or

$10.5 million for a TV station).

Furthermore, they do not meet the

Small Business Act’s definition of a

‘‘small business concern’’ because they

are not independently owned and

operated.100

38. Multipoint Distribution Service

(MDS). This service involves a variety of

transmitters, which are used to relay

programming to the home or office,

similar to that provided by cable

television systems.101 In connection

with the 1996 MDS auction the

Commission defined small businesses as

entities that had annual average gross

revenues for the three preceding years

not in excess of $40 million.102 This

definition of a small entity in the

context of MDS auctions has been

approved by the SBA.103 These stations

were licensed prior to implementation

of section 309(j) of the Communications

Act of 1934, as amended, 47 U.S.C.

309(j). Licenses for new MDS facilities

are now awarded to auction winners in

Basic Trading Areas (BTAs) and BTAlike areas.104 The MDS auctions resulted

in 67 successful bidders obtaining

licensing opportunities for 493 BTAs. Of

the 67 auction winners, 61 meet the

definition of a small business. There are

1,573 previously authorized and

proposed MDS stations currently

licensed. Thus, we conclude that there

are 1,634 MDS providers that are small

businesses as deemed by the SBA and

the Commission’s auction rules. It is

estimated, however, that only 1,878

MDS licensees are subject to regulatory

fees and the number which are small

businesses is unknown.

Wireless and Commercial Mobile

Services

39. Cellular Licensees. Neither the

Commission nor the SBA has developed

a definition of small entities applicable

to cellular licensees. Therefore, the

applicable definition of small entity is

the definition under the SBA rules

applicable to radiotelephone (wireless)

companies. This provides that a small

entity is a radiotelephone company

employing no more than 1,500

persons.105 According to the Bureau of

the Census, only twelve radiotelephone

firms out of a total of 1,178 such firms

which operated during 1992 had 1,000

or more employees.106 Therefore, even if

all twelve of these firms were cellular

telephone companies, nearly all cellular

carriers were small businesses under the

SBA’s definition. In addition, we note

that there are 1,758 cellular licenses;

however, a cellular licensee may own

several licenses. In addition, according

to the most recent Telecommunications

Industry Revenue data, 804 carriers

reported that they were engaged in the

provision of either cellular service or

Personal Communications Service (PCS)

services, which are placed together in

the data.107 We do not have data

specifying the number of these carriers

that are not independently owned and

operated or have more than 1,500

employees, and thus are unable at this

time to estimate with greater precision

the number of cellular service carriers

that would qualify as small business

concerns under the SBA’s definition.

Consequently, we estimate that there are

fewer than 804 small cellular service

carriers that may be affected by the

proposed rules, if adopted.

40. 220 MHz Radio Services. Because

the Commission has not yet defined a

small business with respect to 220 MHz

services, we will utilize the SBA

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.108 With

respect to 220 MHz services, the

Commission has proposed a two-tiered

definition of small business for

purposes of auctions: (1) For Economic

Area (EA) licensees, a firm with average

annual gross revenues of not more than

$6 million for the preceding three years

and (2) for regional and nationwide

licensees, a firm with average annual

gross revenues of not more than $15

million for the preceding three years.

Given that nearly all radiotelephone

companies under the SBA definition

employ no more than 1,500 employees

(as noted supra), we will consider the

approximately 1,500 incumbent

licensees in this service as small

businesses under the SBA definition.

41. Private and Common Carrier

Paging. The Commission has proposed a

two-tier definition of small businesses

in the context of auctioning licenses in

the Common Carrier Paging and

exclusive Private Carrier Paging

services. Under the proposal, a small

business will be defined as either (1) an

entity that, together with its affiliates

and controlling principals, has average

gross revenues for the three preceding

years of not more than $3 million, or (2)

an entity that, together with affiliates

and controlling principals, has average

gross revenues for the three preceding

calendar years of not more than $15

million. Because the SBA has not yet

approved this definition for paging

services, we will utilize the SBA’s

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.109 At present,

there are approximately 24,000 Private

Paging licenses and 74,000 Common

Carrier Paging licenses. According to the

most recent Telecommunications

Industry Revenue data, 172 carriers

reported that they were engaged in the

provision of either paging or ‘‘other

mobile’’ services, which are placed

together in the data.110 We do not have

data specifying the number of these

carriers that are not independently

owned and operated or have more than

1,500 employees, and thus are unable at

this time to estimate with greater

precision the number of paging carriers
35866 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

111 13 CFR 121.201, SIC code 4812.

112Telecommunications Industry Revenue, Figure

2.

113See Amendment of Parts 20 and 24 of the

Commission’s Rules—Broadband PCS Competitive

Bidding and the Commercial Mobile Radio Service

Spectrum Cap, Report and Order, FCC 96–278, WT

Docket No. 96–59, paragraphs 57–60 (released June

24, 1996), 61 FR 33859 (July 1, 1996); see also 47

CFR 24.720(b).

114See Amendment of parts 20 and 24 of the

Commission’s Rules—Broadband PCS Competitive

Bidding and the Commercial Mobile Radio Service

Spectrum Cap, Report and Order, FCC 96–278, WT

Docket No. 96–59, paragraph 60 (1996), 61 FR

33859 (July 1, 1996).

115See, e.g., Implementation of section 309(j) of

the Communications Act—Competitive Bidding, PP

Docket No. 93–253, Fifth Report and Order, 9 FCC

Rcd 5532, 5581–84 (1994).

116FCC News, Broadband PCS, D, E and F Block

Auction Closes, No. 71744 (released January 14,

1997).

117The service is defined in 47 CFR 22.99.

118BETRS is defined in 47 CFR 22.757, 22.759.

119 13 CFR 121.201, SIC code 4812.

120The service is defined in 47 CFR 22.99.

121 13 CFR 121.201, SIC code 4812.

122See 47 CFR 90.814(b)(1).

that would qualify as small business

concerns under the SBA’s definition.

Consequently, we estimate that there are

fewer than 172 small paging carriers

that may be affected by the proposed

rules, if adopted. We estimate that the

majority of private and common carrier

paging providers would qualify as small

entities under the SBA definition.

42. Mobile Service Carriers. Neither

the Commission nor the SBA has

developed a definition of small entities

specifically applicable to mobile service

carriers, such as paging companies. As

noted above in the section concerning

paging service carriers, the closest

applicable definition under the SBA

rules is that for radiotelephone

(wireless) companies,111 and the most

recent Telecommunications Industry

Revenue data shows that 172 carriers

reported that they were engaged in the

provision of either paging or ‘‘other

mobile’’ services.112 Consequently, we

estimate that there are fewer than 172

small mobile service carriers that may

be affected by the proposed rules, if

adopted.

43. Broadband Personal

Communications Service (PCS). The

broadband PCS spectrum is divided into

six frequency blocks designated A

through F, and the Commission has held

auctions for each block. The

Commission defined ‘‘small entity’’ for

Blocks C and F as an entity that has

average gross revenues of less than $40

million in the three previous calendar

years.113 For Block F, an additional

classification for ‘‘very small business’’

was added and is defined as an entity

that, together with their affiliates, has

average gross revenues of not more than

$15 million for the preceding three

calendar years.114 These regulations

defining ‘‘small entity’’ in the context of

broadband PCS auctions have been

approved by the SBA.115 No small

businesses within the SBA-approved

definition bid successfully for licenses

in Blocks A and B. There were 90

winning bidders that qualified as small

entities in the Block C auctions. A total

of 93 small and very small business

bidders won approximately 40% of the

1,479 licenses for Blocks D, E, and F.116

Based on this information, we conclude

that the number of small broadband PCS

licensees will include the 90 winning C

Block bidders and the 93 qualifying

bidders in the D, E, and F blocks, for a

total of 183 small entity PCS providers

as defined by the SBA and the

Commission’s auction rules.

44. Narrowband PCS. The

Commission has auctioned nationwide

and regional licenses for narrowband

PCS. There are 11 nationwide and 30

regional licensees for narrowband PCS.

The Commission does not have

sufficient information to determine

whether any of these licensees are small

businesses within the SBA-approved

definition for radiotelephone

companies. At present, there have been

no auctions held for the major trading

area (MTA) and basic trading area (BTA)

narrowband PCS licenses. The

Commission anticipates a total of 561

MTA licenses and 2,958 BTA licenses

will be awarded by auction. Such

auctions have not yet been scheduled,

however. Given that nearly all

radiotelephone companies have no more

than 1,500 employees and that no

reliable estimate of the number of

prospective MTA and BTA narrowband

licensees can be made, we assume, for

purposes of this IRFA, that all of the

licenses will be awarded to small

entities, as that term is defined by the

SBA.

45. Rural Radiotelephone Service. The

Commission has not adopted a

definition of small entity specific to the

Rural Radiotelephone Service.117 A

significant subset of the Rural

Radiotelephone Service is the Basic

Exchange Telephone Radio Systems

(BETRS).118 We will use the SBA’s

definition applicable to radiotelephone

companies, i.e., an entity employing no

more than 1,500 persons.119 There are

approximately 1,000 licensees in the

Rural Radiotelephone Service, and we

estimate that almost all of them qualify

as small entities under the SBA’s

definition.

46. Air-Ground Radiotelephone

Service.120 The Commission has not

adopted a definition of small entity

specific to the Air-Ground

Radiotelephone Service. Accordingly,

we will use the SBA’s definition

applicable to radiotelephone companies,

i.e., an entity employing no more than

1,500 persons.121 There are

approximately 100 licensees in the AirGround Radiotelephone Service, and we

estimate that almost all of them qualify

as small under the SBA definition.

47. Specialized Mobile Radio (SMR).

The Commission awards bidding credits

in auctions for geographic area 800 MHz

and 900 MHz SMR licenses to firms that

had revenues of no more than $15

million in each of the three previous

calendar years.122 In the context of 900

MHz SMR, this regulation defining

‘‘small entity’’ has been approved by the

SBA; approval concerning 800 MHz

SMR is being sought.

48. The proposed fees in the NPRM

apply to SMR providers in the 800 MHz

and 900 MHz bands that either hold

geographic area licenses or have

obtained extended implementation

authorizations. We do not know how

many firms provide 800 MHz or 900

MHz geographic area SMR service

pursuant to extended implementation

authorizations, nor how many of these

providers have annual revenues of no

more than $15 million. One firm has

over $15 million in revenues. We

assume, for purposes of this IRFA, that

all of the remaining existing extended

implementation authorizations are held

by small entities, as that term is defined

by the SBA.

49. The Commission has held

auctions for geographic area licenses in

the 900 MHz SMR band, and recently

completed an auction for geographic

area 800 MHz SMR licenses. There were

60 winning bidders who qualified as

small entities in the 900 MHz auction.

In the recently concluded 800 MHz

SMR auction there were 524 licenses

awarded to winning bidders, of which

38 were won by small or very small

entities.

50. Private Land Mobile Radio

(PLMR). PLMR systems serve an

essential role in a range of industrial,

business, land transportation, and

public safety activities. These radios are

used by companies of all sizes operating

in all U.S. business categories. The

Commission has not developed a

definition of small entity specifically

applicable to PLMR licensees due to the

vast array of PLMR users. For the

purpose of determining whether a

licensee is a small business as defined

by the SBA, each licensee would need

to be evaluated within its own business

area.
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35867

123Federal Communications Commission, 60th

Annual Report, Fiscal Year 1994, at 116.

124 13 CFR 121.201, SIC code 4812.

125 47 CFR 101 et seq. (formerly, Part 21 of the

Commission’s rules).

126Persons eligible under parts 80 and 90 of the

Commission’s rules can use Private OperationalFixed Microwave services. See 47 CFR parts 80 and

90. Stations in this service are called operationalfixed to distinguish them from common carrier and

public fixed stations. Only the licensee may use the

operational-fixed station, and only for

communications related to the licensee’s

commercial, industrial, or safety operations.

127Auxiliary Microwave Service is governed by

part 74 of Title 47 of the Commission’s rules. See

47 CFR 74 et seq. Available to licensees of broadcast

stations and to broadcast and cable network

entities, broadcast auxiliary microwave stations are

used for relaying broadcast television signals from

the studio to the transmitter, or between two points

such as a main studio and an auxiliary studio. The

service also includes mobile TV pickups, which

relay signals from a remote location back to the

studio.

128 13 CFR 121.201, SIC 4812.

129With the exception of the special emergency

service, these services are governed by subpart B of

part 90 of the Commission’s rules, 47 CFR 90.15–

90.27. The police service includes 26,608 licenses

that serve state, county, and municipal enforcement

through telephony (voice), telegraphy (code) and

teletype and facsimile (printed material). The fire

radio service includes 22,677 licensees comprised

of private volunteer or professional fire companies

as well as units under governmental control. The

local government service that is presently

comprised of 40,512 licensees that are state, county,

or municipal entities that use the radio for official

purposes not covered by other public safety

services. There are 7,325 licensees within the

forestry service which is comprised of licensees

from state departments of conservation and private

forest organizations who set up communications

networks among fire lookout towers and ground

crews. The 9,480 state and local governments are

licensed to highway maintenance service provide

emergency and routine communications to aid

other public safety services to keep main roads safe

for vehicular traffic. The 1,460 licensees in the

Emergency Medical Radio Service (EMRS) use the

39 channels allocated to this service for emergency

medical service communications related to the

delivery of emergency medical treatment. 47 CFR

90.15–90.27. The 19,478 licensees in the special

emergency service include medical services, rescue

organizations, veterinarians, handicapped persons,

disaster relief organizations, veterinarians,

handicapped persons, disaster relief organizations,

school buses, beach patrols, establishments in

isolated areas, communications standby facilities,

and emergency repair of public communications

facilities. 47 CFR 90.33–90.55.

130 5 U.S.C. 601(5).

131Licensees in the Citizens Band (CB) Radio

Service, General Mobile Radio Service (GMRS),

Radio Control (R/C) Radio Service and Family

Radio Service (FRS) are governed by subpart D,

subpart A, subpart C, and subpart B, respectively,

of part 95 of the Commission’s rules. 47 CFR

95.401–95.428; 95.1–95.181; 95.201–95.225; 47 CFR

95.191–95.194.

132This service is governed by subpart I of part

22 of the Commission’s rules. See 47 CFR 22.1001–

22.1037.

51. The Commission is unable at this

time to estimate the number of small

businesses which could be impacted by

the rules. However, the Commission’s

1994 Annual Report on PLMRs 123

indicates that at the end of FY 1994

there were 1,087,267 licensees operating

12,481,989 transmitters in the PLMR

bands below 512 MHz. Because any

entity engaged in a commercial activity

is eligible to hold a PLMR license, the

proposed rules in this context could

potentially impact every small business

in the United States.

52. Amateur Radio Service. We

estimate that 10,000 applicants will

apply for vanity call signs in FY 1998.

All are presumed to be individuals. All

other amateur licensees are exempt from

payment of regulatory fees.

53. Aviation and Marine Radio

Service. Small businesses in the

aviation and marine radio services use

a marine very high frequency (VHF)

radio, any type of emergency position

indicating radio beacon (EPIRB) and/or

radar, a VHF aircraft radio, and/or any

type of emergency locator transmitter

(ELT). The Commission has not

developed a definition of small entities

specifically applicable to these small

businesses. Therefore, the applicable

definition of small entity is the

definition under the SBA rules for

radiotelephone communications.124

54. Most applicants for recreational

licenses are individuals. Approximately

581,000 ship station licensees and

131,000 aircraft station licensees operate

domestically and are not subject to the

radio carriage requirements of any

statute or treaty. Therefore, for purposes

of our evaluations and conclusions in

this IRFA, we estimate that there may be

at least 712,000 potential licensees

which are individuals or are small

entities, as that term is defined by the

SBA. We estimate, however, that only

16,500 will be subject to FY 1998

regulatory fees.

55. Fixed Microwave Services.

Microwave services include common

carrier,125 private-operational fixed,126

and broadcast auxiliary radio

services.127 At present, there are

approximately 22,015 common carrier

fixed licensees and 61,670 private

operational-fixed licensees and

broadcast auxiliary radio licensees in

the microwave services. The

Commission has not yet defined a small

business with respect to microwave

services. For purposes of this IRFA, we

will utilize the SBA’s definition

applicable to radiotelephone

companies—i.e., an entity with no more

than 1,500 persons.128 We estimate, for

this purpose, that all of the Fixed

Microwave licensees (excluding

broadcast auxiliary licensees) would

qualify as small entities under the SBA

definition for radiotelephone

companies.

56. Public Safety Radio Services.

Public Safety radio services include

police, fire, local government, forestry

conservation, highway maintenance,

and emergency medical services.129

There are a total of approximately

127,540 licensees within these services.

Governmental entities as well as private

businesses comprise the licensees for

these services. As indicated supra in

paragraph 4 of this IRFA, all

governmental entities with populations

of less than 50,000 fall within the

definition of a small entity.130 All

licensees in this category are exempt

from the payment of regulatory fees.

57. Personal Radio Services. Personal

radio services provide short-range, low

power radio for personal

communications, radio signalling, and

business communications not provided

for in other services. The services

include the citizen’s band (CB) radio

service, general mobile radio service

(GMRS), radio control radio service, and

family radio service (FRS).131 Inasmuch

as the CB, GMRS, and FRS licensees are

individuals, no small business

definition applies for these services. We

are unable at this time to estimate the

number of other licensees that would

qualify as small under the SBA’s

definition; however, only GMRS

licensees are subject to regulatory fees.

58. Offshore Radiotelephone Service.

This service operates on several UHF

TV broadcast channels that are not used

for TV broadcasting in the coastal area

of the states bordering the Gulf of

Mexico.132 At present, there are

approximately 55 licensees in this

service. We are unable at this time to

estimate the number of licensees that

would qualify as small under the SBA’s

definition for radiotelephone

communications.

59. Wireless Communications

Services. This service can be used for

fixed, mobile, radiolocation and digital

audio broadcasting satellite uses. The

Commission defined ‘‘small business’’

for the wireless communications

services (WCS) auction as an entity with

average gross revenues of $40 million

for each of the three preceding years,

and a ‘‘very small business’’ as an entity

with average gross revenues of $15

million for each of the three preceding

years.

The Commission auctioned

geographic area licenses in the WCS

service. In the auction, there were seven

winning bidders that qualified as very

small business entities, and one that

qualified as a small business entity. We

conclude that the number of geographic

area WCS licensees affected includes

these eight entities.
35868 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

133The following categories are exempt from the

Commission’s Schedule of Regulatory Fees:

Amateur radio licensees (except applicants for

vanity call signs) and operators in other nonlicensed services (e.g., Personal Radio, part 15, ship

and aircraft). Governments and non-profit (exempt

under section 501(c) of the Internal Revenue Code)

entities are exempt from payment of regulatory fees

and need not submit payment. Non-commercial

educational broadcast licensees are exempt from

regulatory fees as are licensees of auxiliary

broadcast services such as low power auxiliary

stations, television auxiliary service stations,

remote pickup stations and aural broadcast

auxiliary stations where such licenses are used in

conjunction with commonly owned noncommercial educational stations. Emergency Alert

System licenses for auxiliary service facilities are

also exempt as are instructional television fixed

service licensees. Regulatory fees are automatically

waived for the license of any translator station that:

(1) Is not licensed to, in whole or in part, and does

not have common ownership with, the licensee of

a commercial broadcast station; (2) does not derive

income from advertising; and (3) is dependent on

subscriptions or contributions from members of the

community served for support. Receive only earth

station permittees are exempt from payment of

regulatory fees. A regulatee will be relieved of its

fee payment requirement if its total fee due,

including all categories of fees for which payment

is due by the entity, amounts to less than $10.

134 47 U.S.C. 1.1164(a).

135 47 U.S.C. 1.1164(c).

136Pub. L. 104–134, 110 Stat. 1321 (1996).

137 31 U.S.C. 7701(c)(2)(B).

138 47 U.S.C. 1.1166.

194See 47 U.S.C. <nothing> 159(b)(1)(A) and

(b)(3).

IV. Description of Projected Reporting,

Recordkeeping and Other Compliance

Requirements

60. With certain exceptions, the

Commission’s Schedule of Regulatory

Fees applies to all Commission

licensees and regulatees. Most licensees

will be required to count the number of

licenses or call signs authorized,

complete and submit an FCC Form 159,

‘‘FCC Remittance Advice,’’ and pay a

regulatory fee based on the number of

licenses or call signs.133 Interstate

telephone service providers must

compute their annual regulatory fee

based on their adjusted gross interstate

revenue using information they already

supply to the Commission in

compliance with the TRS Fund, and

they must complete and submit the FCC

Form 159. Compliance with the fee

schedule will require some licensees to

tabulate the number of units (e.g.,

cellular telephones, pagers, cable TV

subscribers) they have in service,

complete and submit an FCC Form 159.

Licensees ordinarily will keep a list of

the number of units they have in service

as part of their normal business

practices. Licensees/regulatees that

must pay on the basis of subscriber

counts shall submit documentation

which supports the number of units for

which payment is submitted. Each

licensee/regulatee shall provide

certification by affixing their signature

to the FCC Form 159 that all

information submitted is true and

accurate. No additional outside

professional skills are required to

complete the FCC Form 159, and it can

be completed by the employees

responsible for an entity’s business

records.

61. Each licensee must submit the

FCC Form 159 to the Commission’s

lockbox bank after computing the

number of units subject to the fee. As an

option, licensees are permitted to file

electronically or on computer diskette to

minimize the burden of submitting

multiple copies of the FCC Form 159.

Although not mandatory, the latter

procedure may require additional

technical skills. Licensees who pay

small fees in advance supply fee

information as part of their application

and do not need to use the FCC Form

159.

62. Licensees and regulatees are

advised that failure to submit the

required regulatory fee and/or the

required supporting documentation in a

timely manner will subject the licensee

or regulatee to a late payment fee of an

additional 25% in addition to the

required fee.134 Until payment is

received, no new or pending

applications will be processed, and

existing authorizations may be subject

to rescission.135 Further, in accordance

with the Debt Collection Improvement

Act of 1996, federal agencies may bar a

person or entity from obtaining a federal

loan or loan insurance guarantees if that

person or entity fails to pay a delinquent

debt owed to any federal agency.136

Thus, debts owed to the Commission

may result in a person or entity being

denied a federal loan or loan guarantee

pending before another federal agency

until such obligations are paid.137

63. The Commission’s rules currently

make provision for relief in exceptional

circumstances. Persons or entities that

believe they have been placed in the

wrong regulatory fee category or are

experiencing extraordinary and

compelling financial hardship, upon a

showing that such circumstances

override the public interest in

reimbursing the Commission for its

regulatory costs, may request a waiver,

reduction or deferment of payment of

the regulatory fee.138 However, timely

submission of the required regulatory

fee must accompany requests for

waivers or reductions. This will avoid

any late payment penalty if the request

is denied. The fee will be refunded if

the request is granted. In exceptional

and compelling instances (where

payment of the regulatory fee along with

the waiver or reduction request could

result in reduction of service to a

community or other financial hardship

to the licensee), the Commission will

accept a petition to defer payment along

with a waiver or reduction request.

V. Steps Taken to Minimize Significant

Economic Impact on Small Entities, and

Significant Alternatives Considered

64. The Omnibus Consolidated

Appropriation Act, Pub. L. 105–119,

requires the Commission to revise its

Schedule of Regulatory Fees in order to

recover the amount of regulatory fees

that Congress, pursuant to section 9(a)

of the Communications Act, as

amended, has required it to collect for

Fiscal Year (FY) 1998. See 47 U.S.C.159

(a). We have sought comment on the

proposed methodology for

implementing these statutory

requirements and any other potential

impact of these proposals on small

business entities.

65. With the use actual cost

accounting data for computation of

regulatory fees, we found that some fees

which were very small in previous years

would have increased dramatically. The

statute establishing regulatory fees

provides for permitted amendments to

be made to the schedule of fees in the

public interest.139 The methodology

adopted in this Report and Order

minimizes this impact by limiting the

amount of increase and shifting costs to

other services which, for the most part,

are larger entities.

66. We have developed and adopted

an alternative methodology for assessing

fees to recover the regulatory costs

attributable to AM and FM radio

stations. The radio industry has

requested additional relief for small

stations, and we offered two alternative

proposals for comment. One would

update the schedule of fees adopted in

the FY 1997 Report and Order. The

other proposal would increase the

differences in the fee amount between

larger and smaller stations. Both options

benefitted by changing the service

contours used to determine populations

for determining station size. The impact

of adoption of our proposal will result

in lower fees for smaller, less powerful

stations relative to larger, more powerful

stations in the same radio market; or

stations potentially serving a larger

population.

67. Several categories of licensees and

regulatees are exempt from payment of

regulatory fees. See, e.g., footnote 108,

supra, and Attachment H of this Report

and Order, infra.

Report to Congress: The Commission

shall include a copy of this Final
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35869

140The Wireless Telecommunications Bureau’s

staff advises that they do not anticipate receiving any applications for IVDS in FY 1998. Therefore, since there is no volume, there will be no regulatory

fee in the IVDS category for FY 1998.

Regulatory Flexibility Analysis, along

with this Report and Order, in a report

to Congress pursuant to the Small

Business Regulatory Enforcement

Fairness Act of 1996, 5 U.S.C.

801(a)(1)(A). A copy of this FRFA (or

summary thereof) will also be published

in the Federal Register, along with this

Report and Order.

Attachment B—Sources of Payment

Unit Estimates For FY 1998

In order to calculate individual

service fees for FY 1998, we adjusted FY

1997 payment units for each service to

more accurately reflect expected FY

1998 payment liabilities. We obtained

our updated estimates through a variety

of means. For example, we used

Commission licensee data bases, actual

prior year payment records and industry

and trade association projections when

available. We tried to obtain verification

for these estimates from multiple

sources and, in all cases, we compared

FY 1998 estimates with actual FY 1997

payment units to ensure that our revised

estimates were reasonable. Where it

made sense, we adjusted and/or

rounded our final estimates to take into

consideration the fact that certain

variables that impact on the number of

payment units cannot yet be estimated

exactly. These include an unknown

number of waivers and/or exemptions

that may occur in FY 1998 and the fact

that, in many services, the number of

actual licensees or station operators

fluctuates from time to time due to

economic, technical or other reasons.

Therefore, when we note, for example,

that our estimated FY 1998 payment

units are based on FY 1997 actual

payment units, it does not necessarily

mean that our FY 1998 projection is

exactly the same number as FY 1997. It

means that we have either rounded the

FY 1998 number or adjusted it slightly

to account for these variables.

Fee category Sources of payment unit estimates

Land Mobile (All), Microwave, IVDS140, Marine

(Ship & Coast), Aviation (Aircraft & Ground),

GMRS, Amateur Vanity Call Signs, Domestic

Public Fixed.

Based on Wireless Telecommunications Bureau (WTB) projections of new applications and renewals taking into consideration existing Commission licensee data bases. Aviation (Aircraft)

and Marine (Ship) estimates have been adjusted to take into consideration the licensing of

portions of these services on a voluntary basis.

CMRS Mobile Services ....................................... Based on actual FY 1997 payment units adjusted to take into consideration industry estimates

of growth between FY 1997 and FY 1998 and Wireless Telecommunications Bureau projections of new applications and average number of mobile units associated with each application.

CMRS Messaging Services ................................ Based on industry estimates of the number of units in operation.

AM/FM Radio Stations ........................................ Based on actual FY 1997 payment units.

UHF/VHF Television Stations ............................. Based on actual FY 1997 payment units.

AM/FM/TV Construction Permits ........................ Based on actual FY 1997 payment units.

LPTV, Translators and Boosters ........................ Based on actual FY 1997 payment units.

Auxiliaries ............................................................ Based on actual FY 1997 payment units.

MDS/MMDS ........................................................ Based on actual FY 1997 payment units.

Cable Antenna Relay Service (CARS) ............... Based on actual FY 1997 payment units.

Cable Television System Subscribers ................ Based on Cable Services Bureau and industry estimates of subscribership.

Interstate Telephone Service Providers ............. Based on actual FY 1997 interstate revenues associated with contributions to the Telecommunications Relay System (TRS) Fund, adjusted to take into consideration FY 1998

revenue growth in this industry as estimated by the Common Carrier Bureau.

Earth Stations ..................................................... Based on actual FY 1997 payment units.

Space Stations (GEOs & NGEOs) ..................... Based on International Bureau licensee data bases.

International Bearer Circuits ............................... Based on International Bureau estimate.

International HF Broadcast Stations, International Public Fixed Radio Service.Based on actual FY 1997 payment units.

Attachment C—Calculation of Revenue Requirements

Fee category

FY 1998

payment

units

(times) FY

1997 Fee

(times) payment years

(equals)

computed

FY 1998

revenue requirement

Pro-rated revenue

requirement**

LM (220 MHz, >470 MHZ-Base, SMRS) .............................................. 4,645 10 5 232,250 225,691

Private Microwave ................................................................................. 3,830 10 10 383,000 372,184

Domestic Public Fixed/Comc’l Microwave ............................................ 5,150 10 10 515,000 500,456

IVDS ...................................................................................................... 0 0 5 0 0

Marine (Ship) ......................................................................................... 16,500 5 10 825,000 801,702

GMRS/Other LM .................................................................................... 72,465 5 5 1,811,625 1,760,465

Aviation (Aircraft) ................................................................................... 3,500 5 10 175,000 170,058

Marine (Coast) ....................................................................................... 1,370 5 5 34,250 33,283

Aviation (Ground) .................................................................................. 1,865 5 5 46,625 45,308

Amateur Vanity Call Signs .................................................................... 10,000 5 10 500,000 485,880

AM/FM Radio ......................................................................................... 8,646 1,126 1 9,735,396 9,460,469

AM Construction Permits ....................................................................... 62 195 1 12,090 11,749

FM Construction Permits ....................................................................... 473 950 1 449,350 436,660

Satellite TV ............................................................................................ 105 950 1 99,750 96,933

Satellite TV Construction Permit ........................................................... 10 345 1 3,450 3,353
35870 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

Fee category

FY 1998

payment

units

(times) FY

1997 Fee

(times) payment years

(equals)

computed

FY 1998

revenue requirement

Pro-rated revenue

requirement**

VHF Markets 1–10 ................................................................................ 42 35,025 1 1,471,050 1,429,508

VHF Markets 11–25 .............................................................................. 61 28,450 1 1,735,450 1,686,441

VHF Markets 26–50 .............................................................................. 71 18,600 1 1,320,600 1,283,306

VHF Markets 51–100 ............................................................................ 118 9,850 1 1,162,300 1,129,477

VHF Remaining Markets ....................................................................... 207 2,725 1 564,075 548,146

VHF Construction Permits ..................................................................... 10 4,800 1 48,000 46,644

UHF Markets 1–10 ................................................................................ 94 16,850 1 1,583,900 1,539,171

UHF Markets 11–25 .............................................................................. 96 13,475 1 1,293,600 1,257,069

UHF Markets 26–50 .............................................................................. 124 8,750 1 1,085,000 1,054,360

UHF Markets 51–100 ............................................................................ 172 4,725 1 812,700 789,749

UHF Remaining Markets ....................................................................... 182 1,350 1 245,700 238,761

UHF Construction Permits ..................................................................... 50 2,975 1 148,750 144,549

Auxiliaries .............................................................................................. 20,000 25 1 500,000 485,880

International HF Broadcast .................................................................... 4 390 1 1,560 1,516

LPTV/Translators/Boosters .................................................................... 2,290 220 1 503,800 489,573

CARS ..................................................................................................... 1,800 65 1 117,000 113,686

Cable Systems ...................................................................................... 66,000,000 0.54 1 35,640,000 34,633,530

Interstate Telephone Service Providers ................................................ 70,103,000 0.00116 1 81,319,480 79,023,026

CMRS Mobile Services (Cellular/Public Mobile) ................................... 55,540,000 0.24 1 13,329,600 12,953,173

CMRS Messaging Services ................................................................... 39,592,000 0.03 1 1,187,760 1,154,218

MDS/MMDS ........................................................................................... 1,878 215 1 403,770 392,368

International Circuits .............................................................................. 325,000 5 1 1,625,000 1,579,110

International Public Fixed ...................................................................... 3 310 1 930 904

Earth Stations ........................................................................................ 3,000 515 1 1,545,000 1,501,369

Space Stations (Geostationary) ............................................................ 46 97,975 1 4,506,850 4,379,577

Space Stations (Non-geostationary) ..................................................... 2 135,675 1 271,350 263,687

Total Estimated Revenue Collected ............................................... .................... .................... .................... 167,246,011 162,523,000

Total Revenue Requirement .......................................................... .................... .................... .................... 162,523,000 162,523,000

Difference ................................................................................ .................... .................... .................... 4,723,011 0

**0.971760098 factor applied.

ATTACHMENT D—CALCULATION OF REGULATORY COSTS

Fee category Actual FY 1997

regulatory costs

Overhead

and other

indirect pro

rated

Total costs with

overhead and

other indirect

pro rated

Total costs

pro-rated to

$162 Million **

Adjusted prorated costs ***

LM (220 MHz, >470 MHZ-Base, SMRS) ................................ 1,952,428 98,195 2,050,623 2,113,136 2,113,136

Microwave ............................................................................... 4,860,809 244,469 5,105,277 5,260,912 5,260,912

IVDS ........................................................................................ 2,122,499 106,749 2,229,248 2,297,206 2,297,206

Marine (Ship) .......................................................................... 2,754,238 138,521 2,892,759 2,980,945 2,980,945

GMRS/Other LM ..................................................................... 5,943,682 298,930 6,242,612 6,432,918 6,432,918

Aviation (Aircraft) .................................................................... 980,895 49,333 1,030,228 1,061,635 1,061,635

Marine (Coast) ........................................................................ 685,608 34,482 720,090 742,041 742,041

Aviation (Ground) .................................................................... 562,239 28,277 590,516 608,518 608,518

Amateur Vanity Call Signs ...................................................... 88,615 4,457 93,072 95,909 95,909

AM/FM Radio .......................................................................... 14,125,529 710,427 14,835,955 15,288,230 14,396,926

AM Construction Permits ........................................................ .......................... .................... .......................... .................... 103,960

FM Construction Permits ........................................................ .......................... .................... .......................... .................... 787,344

Satellite TV ............................................................................. .......................... .................... .......................... .................... 138,603

Satellite TV Construction Permit ............................................ .......................... .................... .......................... .................... 3,489

VHF Television ....................................................................... 4,957,533 249,333 5,206,866 5,365,598

VHF Markets 1–10 .......................................................... .......................... .................... .......................... .................... 1,177,538

VHF Markets 11–25 ........................................................ .......................... .................... .......................... .................... 1,423,609

VHF Markets 26–50 ........................................................ .......................... .................... .......................... .................... 1,134,321

VHF Markets 51–100 ...................................................... .......................... .................... .......................... .................... 1,055,080

VHF Remaining Markets ................................................. .......................... .................... .......................... .................... 479,377

VHF Construction Permits ............................................... .......................... .................... .......................... .................... 18,765

UHF Television ....................................................................... 2,954,865 148,611 3,103,476 3,198,086

UHF Markets 1–10 .......................................................... .......................... .................... .......................... .................... 993,777

UHF Markets 11–25 ........................................................ .......................... .................... .......................... .................... 767,939

UHF Markets 26–50 ........................................................ .......................... .................... .......................... .................... 614,629

UHF Markets 51–100 ...................................................... .......................... .................... .......................... .................... 510,374

UHF Remaining Markets ................................................. .......................... .................... .......................... .................... 147,610

UHF Construction Permits ............................................... .......................... .................... .......................... .................... 98,573
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35871

ATTACHMENT D—CALCULATION OF REGULATORY COSTS—Continued

Fee category Actual FY 1997

regulatory costs

Overhead

and other

indirect pro

rated

Total costs with

overhead and

other indirect

pro rated

Total costs

pro-rated to

$162 Million **

Adjusted prorated costs ***

Auxiliaries ................................................................................ 146,460 7,366 153,826 158,515 158,515

International HF Broadcast ..................................................... 217,931 10,961 228,891 235,869 235,869

LPTV/Translators/Boosters ..................................................... 736,547 37,044 773,590 797,173 797,173

CARS ...................................................................................... 61,797 3,108 64,905 66,883 66,883

Cable Systems ........................................................................ 20,125,023 1,012,164 21,137,187 21,781,555 21,781,555

Interstate Telewphone Service Providers ............................... 53,234,026 2,677,341 55,911,367 57,615,828 57,615,828

CMRS Mobile Services (Cellular/Public Mobile) .................... 11,273,798 567,002 11,840,801 12,201,768 12,201,768

CMRS Messaging Services .................................................... 6,015,701 302,552 6,318,254 6,510,866 6,510,866

MDS/MMDS ............................................................................ 1,357,260 68,262 1,425,521 1,468,979 1,468,979

International Circuits ............................................................... 8,253,772 415,114 8,668,886 8,933,157 8,933,157

International Public Fixed ....................................................... 193,436 9,729 203,165 209,358 209,358

Earth Stations ......................................................................... 339,999 17,100 357,099 367,985 367,985

Space Stations (Geostationary) .............................................. 5,677,889 285,563 5,963,452 6,145,248 6,145,248

Space Stations (Non-Geostationary) ...................................... 540,215 27,169 567,385 584,681 584,681

Overhead & Other Indirect Costs ........................................... 7,552,257 .................... .......................... .................... ..........................

Total ................................................................................. 157,715,049 7,552,257 157,715,049 162,523,000 159,839,216

Total Revenue Requirement ........................................... 162,523,000 .................... 162,523,000 162,523,000 162,523,000

Difference ................................................................. (4,807,951) .................... (4,807,951) 0 (2,683,784)

** 1.046987 factor applied.

*** The pro rated costs shown in the previous column needed to be adjusted to sub-allocate actual TV and radio costs.

Note: Columns may not add due to rounding.
35872 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

ATTACHMENT E—CALCULATION OF FY 1998 REGULATORY FEES

Fee category

Pro-rated revenue requirement Adjusted activ- ity costs Costs vs. reve- nue require- ment difference (percent) Pro-rated rev- enue require- ment plus 25% ceiling Round 1 tar- get revenue Round 1 ad- justable target revenue Round 1 pro- rated target revenue** Round 2 tar- get revenue Round 2 ad- justable target revenue Round 2 pro- rated target revenue***

Computed

new FY

1998 regulatory

fee

Rounded

new FY

1998 regulatory

fee

Expected FY

1998 revenue

LM (220 MHz, >470 MHZ-Base, SMRS) ......... 225,691 2,113,136 836.30 282,114 282,114 ........................ 282,114 282,114 ........................ 282,114 12 12 278,700Microwave ........................................................ 872,640 5,260,912 502.87 1,090,800 1,090,800 ........................ 1,090,800 1,090,800 ........................ 1,090,800 12 12 1,077,600IVDS ................................................................. 0 2,297,206 .......................... 0 0 ........................ 0 0 ........................ 0 0 0 0Marine (Ship) .................................................... 801,702 2,980,945 271.83 1,002,128 1,002,128 ........................ 1,002,128 1,002,128 ........................ 1,002,128 6 6 990,000GMRS/Other LM ............................................... 1,760,465 6,432,918 265.41 2,200,581 2,200,581 ........................ 2,200,581 2,200,581 ........................ 2,200,581 6 6 2,173,950Aviation (Aircraft) .............................................. 170,058 1,061,635 524.28 212,573 212,573 ........................ 212,573 212,573 ........................ 212,573 6 6 210,000Marine (Coast) .................................................. 33,283 742,041 2129.49 41,604 41,604 ........................ 41,604 41,604 ........................ 41,604 6 6 41,100Aviation (Ground) ............................................. 45,308 608,518 1243.07 56,635 56,635 ........................ 56,635 56,635 ........................ 56,635 6 6 55,950Amateur Vanity Call Signs ............................... 485,880 95,909 (80.26) 607,350 95,909 95,909 128,372 128,372 128,372 128,527 1.29 1.30 130,000AM/FM Radio ................................................... 9,460,469 14,396,926 52.18 11,825,586 11,825,586 ........................ 11,825,586 11,825,586 ........................ 11,825,586 1,368 1,375 11,888,250AM Construction Permits ................................. 11,749 103,960 784.84 14,686 14,686 ........................ 14,686 14,686 ........................ 14,686 237 235 14,570FM Construction Permits .................................. 436,660 787,344 80.31 545,825 545,825 ........................ 545,825 545,825 ........................ 545,825 1,154 1,150 543,950Satellite TV ....................................................... 96,933 138,603 42.99 121,166 121,166 ........................ 121,166 121,166 ........................ 121,166 1,166 1,175 123,375Satellite TV Construction Permit ...................... 3,353 3,489 4.06 4,191 3,489 3,489 4,670 4,191 ........................ 4,191 419 420 4,200VHF Markets 1–10 ........................................... 1,429,508 1,177,538 (17.63) 1,786,885 1,177,538 1,177,538 1,576,112 1,576,112 1,576,112 1,578,013 37,572 37,575 1,578,150VHF Markets 11–25 ......................................... 1,686,441 1,423,609 (15.59) 2,108,051 1,423,609 1,423,609 1,905,473 1,905,473 1,905,473 1,907,772 31,275 31,275 1,907,775VHF Markets 26–50 ......................................... 1,283,306 1,134,321 (11.61) 1,604,133 1,134,321 1,134,321 1,518,267 1,518,267 1,518,267 1,520,098 21,410 21,400 1,519,400VHF Markets 51–100 ....................................... 1,129,477 1,055,080 (6.59) 1,411,846 1,055,080 1,055,080 1,412,204 1,411,846 ........................ 1,411,846 11,965 11,975 1,413,050VHF Remaining Markets .................................. 548,146 479,377 (12.55) 685,183 479,377 479,377 641,637 641,637 641,637 642,411 3,103 3,100 641,700VHF Construction Permits ................................ 46,664 18,765 (59.79) 58,350 18,765 18,765 25,117 25,117 25,117 25,147 2,515 2,525 25,250UHF Markets 1–10 ........................................... 1,539,171 993,777 (35.43) 1,923,964 993,777 993,777 1,330,151 1,330,151 1,330,151 1,331,756 14,168 14,175 1,332,450UHF Markets 11–25 ......................................... 1,257,069 767,939 (38.91) 1,571,336 767,939 767,939 1,027,872 1,027,872 1,027,872 1,029,111 10,720 10,725 1,029,600UHF Markets 26–50 ......................................... 1,054,360 614,629 (41.71) 1,317,950 614,629 614,629 822,669 822,669 822,669 823,661 6,642 6,650 824,600UHF Markets 51–100 ....................................... 789,749 510,374 (35.38) 987,186 510,374 510,374 683,126 683,126 683,126 683,950 3,976 3,975 683,700UHF Remaining Markets .................................. 238,761 147,610 (38.18) 298,451 147,610 147,610 197,573 197,573 197,573 197,811 1,087 1,075 195,650UHF Construction Permits ............................... 144,549 98,573 (31.81) 180,686 98,573 98,573 131,938 131,938 131,938 132,097 2,642 2,650 132,500Auxiliaries ......................................................... 485,880 158,515 (67.38) 607,350 158,515 158,515 212,169 212,169 212,169 212,425 11 11 220,000International HF Broadcast .............................. 1,516 235,869 15458.64 1,895 1,895 ........................ 1,895 1,895 ........................ 1,895 474 475 1,900LPTV/Translators/Boosters .............................. 489,573 797,173 62.83 611,966 611,966 ........................ 611,966 611,966 ........................ 611,966 267 265 606,850CARS ................................................................ 113,696 66,883 (41.17) 142,120 66,883 66,883 89,522 89,522 89,522 89,630 50 50 90,000Cable Systems ................................................. 34,633,530 21,781,555 (37.11) 43,291,913 21,781,555 21,781,555 29,154,192 29,154,192 29,154,192 29,189,360 0.44 0.44 29,189,360Interstate Telephone Service Providers ........... 79,023,026 57,615,828 (27.09) 98,778,783 57,615,828 57,615,828 77,117,676 77,117,676 77,117,676 77,210,702 0.0011 0.0011 77,210,702CMRS Mobile Services (Cellular/Public Mobile) ............................................................... 12,953,173 12,201,768 (5.80) 16,191,466 12,201,768 12,201,768 16,331,831 16,191,466 ........................ 16,191,466 0.29 0.29 16,191,466CMRS Messaging Services ............................. 1,154,218 6,510,866 464.09 1,442,773 1,442,773 ........................ 1,442,773 1,442,773 ........................ 1,442,773 0.04 0.04 1,442,773MDS/MMDS ...................................................... 392,368 1,468,979 274.39 490,460 490,460 ........................ 490,460 490,460 ........................ 490,460 261 260 488,280International Circuits ......................................... 1,579,110 8,933,157 465.71 1,973,888 1,973,888 ........................ 1,973,888 1,973,888 ........................ 1,973,888 6 6 1,950,000International Public Fixed ................................. 904 209,358 23059.07 1,130 1,130 ........................ 1,130 1,130 ........................ 1,130 377 375 1,125Earth Stations ................................................... 1,501,369 367,985 (75.49) 1,876,711 367,985 367,985 492,541 492,541 492,541 493,135 164 165 495,000Space Stations (Geostationary) ....................... 4,379,577 6,145,248 40.32 5,474,471 5,474,471 ........................ 5,474,471 5,474,471 ........................ 5,474,471 119,010 119,000 5,474,000Space Stations (Non-Geostationary) ............... 263,687 584,681 121.73 329,609 329,609 ........................ 329,609 329,609 ........................ 329,609 164,804 164,800 329,000Total Estimated Revenue Collected ................. 162,523,019 162,522,999 .......................... 203,153,774 128,433,413 100,713,524 162,523,000 162,381,798 117,054,406 162,524,243 ................ ................ 162,506,526Total Revenue Requirement ............................ 162,523,000 162,523,000 .......................... 162,523,000 162,523,000 ........................ 162,523,000 162,523,000 ........................ 162,523,000 ................ ................ 162,523,000Difference ......................................................... 19 (1) .......................... 40,630,774 (34,089,587) ........................ 0 (141,202) ........................ 1,243 ................ ................ (16,474)

**1.33782803 factor applied.***1.003487295 factor applied.
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35873

ATTACHMENT F—FY 1998 SCHEDULE OF REGULATORY FEES

Fee category Annual regulatory fee

PMRS (per license) (Formerly Land Mobile—Exclusive Use at 220–222 MHz, above 470 MHz, Base Station and SMRS) (47

CFR Part 90) ...................................................................................................................................................................................... 12

Microwave (per license) (47 CFR Part 101) .......................................................................................................................................... 12

Interactive Video Data Service (per license) (47 CFR Part 95) ........................................................................................................... 1

Marine (Ship) (per station) (47 CFR Part 80) ........................................................................................................................................ 6

Marine (Coast) (per license) (47 CFR Part 80) ..................................................................................................................................... 6

General Mobile Radio Service (per license) (47 CFR Part 95) ............................................................................................................ 6

Land Mobile (per license) (all stations not covered by PMRS and CMRS) .......................................................................................... 6

Aviation (Aircraft) (per station) (47 CFR Part 87) .................................................................................................................................. 6

Aviation (Ground) (per license) (47 CFR Part 87) ................................................................................................................................ 6

Amateur Vanity Call Signs (per call sign) (47 CFR Part 97) ................................................................................................................ 1.30

CMRS Mobile Services (per unit) (47 CFR Parts 20, 22, 24, 80 and 90) ............................................................................................ .29

CMRS Messaging Services (per unit) (47 CFR Parts 20, 22 and 90) .................................................................................................. .04

Multipoint Distribution Services (per call sign) (47 CFR Part 21) ......................................................................................................... 260

TV (47 CFR Part 73) VHF Commercial:

Markets 1–10 .................................................................................................................................................................................. 37,575

Markets 11–25 ................................................................................................................................................................................ 31,275

Markets 26–50 ................................................................................................................................................................................ 21,400

Markets 51–100 .............................................................................................................................................................................. 11,975

Remaining Markets ......................................................................................................................................................................... 3,100

Construction Permits ...................................................................................................................................................................... 2,525

TV (47 CFR Part 73) UHF Commercial:

Markets 1–10 .................................................................................................................................................................................. 14,175

Markets 11–25 ................................................................................................................................................................................ 10,725

Markets 26–50 ................................................................................................................................................................................ 6,650

Markets 51–100 .............................................................................................................................................................................. 3,975

Remaining Markets ......................................................................................................................................................................... 1,075

Construction Permits ...................................................................................................................................................................... 2,650

Satellite Television Stations (All Markets) ............................................................................................................................................. 1,175

Construction Permits—Satellite Television Stations .............................................................................................................................. 420

Low Power TV, TV/FM Translators & Boosters (47 CFR Part 74) ....................................................................................................... 265

Broadcast Auxiliary (47 CFR Part 74) ................................................................................................................................................... 11

Cable Antenna Relay Service (47 CFR Part 78) .................................................................................................................................. 50

Cable Television Systems (per subscriber) (47 CFR Part 76) .............................................................................................................. .44

Interstate Telephone Service Providers (per revenue dollar) ............................................................................................................... .0011

Earth Stations (47 CFR Part 25) ........................................................................................................................................................... 165

Space Stations (per operational station in geostationary orbit) (47 CFR Part 25) also includes Direct Broadcast Satellite Service

(per operational station) (47 CFR Part 100) ...................................................................................................................................... 119,000

Space Stations (per operational system in non-geostationary orbit) (47 CFR Part 25) ....................................................................... 164,800

International Bearer Circuits (per active 64KB circuit) .......................................................................................................................... 6

International Public Fixed (per call sign) (47 CFR Part 23) .................................................................................................................. 375

International (HF) Broadcast (47 CFR Part 73) .................................................................................................................................... 475

1 No fee.

RADIO STATION REGULATORY FEES

Population served AM class A AM class B AM class C AM class D FM classes

A, B1 & C3

FM classes

B, C, C1 &

C2

<=20,000 ........................................................................... 400 300 200 250 300 400

20,001–50,000 .................................................................. 750 600 300 400 600 750

50,001–125,000 ................................................................ 1,250 800 400 600 800 1,250

125,001–400,000 .............................................................. 1,750 1,250 600 750 1,250 1,750

400,001–1,000,000 ........................................................... 2,500 2,000 1,000 1,250 2,000 2,500

>1,000,000 ........................................................................ 4,000 3,250 1,500 2,000 3,250 4,000

ATTACHMENT G—COMPARISON BETWEEN FY 1997 AND FY 1998 PROPOSED AND FINAL REGULATORY FEES

Fee category

Annual regulatory fee FY

1997

NPRM proposed fee FY

1998

Annual regulatory fee FY

1998

PMRS (per license) (Formerly Land Mobile-Exclusive Use at 220–222 Mhz, above 470

Mhz, Base Station and SMRS) (47 CFR Part 90) ............................................................. 10 12 12

Microwave (per license) (47 CFR Part 101) .......................................................................... 10 12 12

Interactive Video Data Service (per license) (47 CFR Part 95) ............................................ (1) (1) (1)

Marine (Ship) (per station) (47 CFR Part 80) ........................................................................ 5 6 6

Marine (Coast) (per license) (47 CFR Part 80) ..................................................................... 5 6 6

General Mobile Radio Service (per license) (47 CFR Part 95) ............................................. 5 6 6
35874 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

ATTACHMENT G—COMPARISON BETWEEN FY 1997 AND FY 1998 PROPOSED AND FINAL REGULATORY FEES—Continued

Fee category

Annual regulatory fee FY

1997

NPRM proposed fee FY

1998

Annual regulatory fee FY

1998

Land Mobile (per license) (all stations not covered by PMRS and CMRS) .......................... 5 6 6

Aviation (Aircraft) (per station) (47 CFR Part 87) .................................................................. 5 6 6

Aviation (Ground) (per license) (47 CFR Part 87) ................................................................. 5 6 6

Amateur Vanity Call Signs (per call sign) (47 CFR Part 97) ................................................. 5 1.29 1.30

CMRS Mobile Services (per unit) (47 CFR Parts 20, 22, 24, 80 and 90) ............................ .24 .29 .29

CMRS Messaging Services [formerly One Way Paging] (per unit) (47 CFR Parts 20, 22,

and 90) ................................................................................................................................ .03 .04 .04

Multipoint Distribution Services (per call sign) (47 CFR Part 21) .......................................... 215 260 260

AM/FM Radio (47 CFR Part 73):

Group 1 ........................................................................................................................... 2,000 2,500 (2)

Group 2 ........................................................................................................................... 1,800 2,250 (2)

Group 3 ........................................................................................................................... 1,600 2,000 (2)

Group 4 ........................................................................................................................... 1,400 1,750 (2)

Group 5 ........................................................................................................................... 1,200 1,500 (2)

Group 6 ........................................................................................................................... 1,000 1,250 (2)

Group 7 ........................................................................................................................... 800 1,000 (2)

Group 8 ........................................................................................................................... 600 750 (2)

Group 9 ........................................................................................................................... 400 500 (2)

Group 10 ......................................................................................................................... 200 250 (2)

AM Construction Permits ................................................................................................ 195 235 235

FM Construction Permits ................................................................................................ 950 1,150 1,150

TV (47 CFR Part 73) VHF Commercial:

Markets 1–10 .................................................................................................................. 35,025 41,275 37,575

Markets 11–25 ................................................................................................................ 28,450 24,850 31,275

Markets 26–50 ................................................................................................................ 18,600 22,600 21,400

Markets 51–100 .............................................................................................................. 9,850 11,375 11,975

Remaining Markets ......................................................................................................... 2,725 3,250 3,100

Construction Permits ....................................................................................................... 4,800 4,100 2,525

TV (47 CFR Part 73) UHF Commercial:

Markets 1–10 .................................................................................................................. 16,850 14,625 14,175

Markets 11–25 ................................................................................................................ 13,575 10,575 10,725

Markets 26–50 ................................................................................................................ 8,750 5,750 6,650

Markets 51–100 .............................................................................................................. 4,725 3,775 3,975

Remaining Markets ......................................................................................................... 1,350 1,500 1,075

Construction Permits ....................................................................................................... 2,975 3,625 2,650

Satellite Television Stations (All Markets) .............................................................................. 950 900 1,175

Construction Permits—Satellite Television Stations .............................................................. 345 420 420

Low Power TV, TV/FM Translators & Boosters (47 CFR Part 74) ....................................... 220 265 265

Broadcast Auxiliary (47 CFR Part 74) ................................................................................... 25 11 11

Cable Antenna Relay Service (47 CFR Part 78) ................................................................... 65 50 50

Earth Stations (47 CFR Part 25) ............................................................................................ 515 165 165

Cable Television Systems (per subscriber) (47 CFR Part 76) .............................................. .54 .44 .44

Interstate Telephone Service Providers (per revenue dollar) ................................................ .00116 .0011 .0011

Space Stations (per operational station in geostationary orbit) (47 CFR Part 25) also includes Direct Broadcast Satellite Service (per operational station) (47 CFR Part 100) .... 97,975 119,000 119,000

Space Stations (per operational system in non-geostationary orbit) (47 CFR Part 25) ....... 135,675 164,800 164,800

International Bearer Circuits (per active 64KB circuit) ........................................................... 5 6 6

International Public Fixed (per call sign) (47 CFR Part 23) .................................................. 310 375 375

International (HF) Broadcast (47 CFR Part 73) ..................................................................... 390 475 475

1 No fee.

2See radio.

RADIO STATION REGULATORY FEES

Populationserved AM class A AM class B AM class C AM class D FMclasses

A, B1 & C3

FMclasses

B, C, C1 &

C2

<=20,000 ........................................................................... 400 300 200 250 300 400

20,001–50,000 .................................................................. 750 600 300 400 600 750

50,001–125,000 ................................................................ 1,250 800 400 600 800 1,250

125,001–400,000 .............................................................. 1,750 1,250 600 750 1,250 1,750

400,001–1,000,000 ........................................................... 2,500 2,000 1,000 1,250 2,000 2,500

>1,000,000 ........................................................................ 4,000 3,250 1,500 2,000 3,250 4,000
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35875

141This category only applies to licensees of

shared-use private 220–222 MHz and 470 MHz and

above in the Specialized Mobile Radio (SMR)

service who have elected not to change to the

Commercial Mobile Radio Service (CMRS). Those

who have elected to change to the CMRS are

referred to paragraph 14 of this Attachment.

142Although this fee category includes licenses

with ten-year terms, the estimated volume of tenyear license applications in FY 1997 is less than

one-tenth of one percent and, therefore, is

statistically insignificant.

Attachment H—Detailed Guidance on

Who Must Pay Regulatory Fees

1. The guidelines below provide an

explanation of regulatory fee categories

established by the Schedule of

Regulatory Fees in section 9(g) of the

Communications Act, 47 U.S.C. 159(g)

as modified in the instant Report and

Order. Where regulatory fee categories

need interpretation or clarification, we

have relied on the legislative history of

section 9, our own experience in

establishing and regulating the Schedule

of Regulatory Fees for Fiscal Years (FY)

1994, 1995, 1996, and 1997 and the

services subject to the fee schedule, and

the comments of the parties in our

proceeding to adopt fees for FY 1998.

The categories and amounts set out in

the schedule have been modified to

reflect changes in the number of

payment units, additions and changes in

the services subject to the fee

requirement and the benefits derived

from the Commission’s regulatory

activities, and to simplify the structure

of the schedule. The schedule may be

similarly modified or adjusted in future

years to reflect changes in the

Commission’s budget and in the

services regulated by the Commission.

See 47 U.S.C. 159(b) (2), (3).

2. Exemptions. Governments and

nonprofit entities are exempt from

paying regulatory fees and should not

submit payment. A nonprofit entity may

be asked to submit a current IRS

Determination Letter documenting that

it is exempt from taxes under section

501of the Internal Revenue Code or the

certification of a governmental authority

attesting to its nonprofit status. The

governmental exemption applies even

where the government-owned or

community-owned facility is in

competition with a commercial

operation. Other specific exemptions are

discussed below in the descriptions of

other particular service categories.

1. Private Wireless Radio Services

3. Two levels of statutory fees were

established for the Private Wireless

Radio Services—exclusive use services

and shared use services. Thus, licensees

who generally receive a higher quality

communication channel due to

exclusive or lightly shared frequency

assignments will pay a higher fee than

those who share marginal quality

assignments. This dichotomy is

consistent with the directive of section

9, that the regulatory fees reflect the

benefits provided to the licensees. See

47 U.S.C. 159(b)(1)(A). In addition,

because of the generally small amount

of the fees assessed against Private

Wireless Radio Service licensees,

applicants for new licenses and

reinstatements and for renewal of

existing licenses are required to pay a

regulatory fee covering the entire license

term, with only a percentage of all

licensees paying a regulatory fee in any

one year. Applications for modification

or assignment of existing authorizations

do not require the payment of regulatory

fees. The expiration date of those

authorizations will reflect only the

unexpired term of the underlying

license rather than a new license term.

a. Exclusive Use Services

4. Private Mobile Radio Services

(PMRS) (Formerly Land Mobile

Services): Regulatees in this category

include those authorized under part 90

of the Commission’s rules to provide

limited access Wireless Radio service

that allows high quality voice or digital

communications between vehicles or to

fixed stations to further the business

activities of the licensee. These services,

using the 220–222 MHz band and

frequencies at 470 MHz and above, may

be offered on a private carrier basis in

the Specialized Mobile Radio Services

(SMRS).141 For FY 1998, PMRS

licensees will pay a $12 annual

regulatory fee per license, payable for an

entire five or ten year license term at the

time of application for a new, renewal,

or reinstatement license.142 The total

regulatory fee due is either $60 for a

license with a five year term or $120 for

a license with a 10 year term.

5. Microwave Services: These services

include private and commercial

microwave systems and private and

commercial carrier systems authorized

under part 101 of the Commission’s

rules to provide telecommunications

services between fixed points on a high

quality channel of communications.

Microwave systems are often used to

relay data and to control railroad,

pipeline, and utility equipment.

Commercial systems typically are used

for video or data transmission or

distribution. For FY 1998, Microwave

licensees will pay a $12 annual

regulatory fee per license, payable for an

entire ten year license term at the time

of application for a new, renewal, or

reinstatement license. The total

regulatory fee due is $120 for the ten

year license term.

6. Interactive Video Data Service

(IVDS): The IVDS is a two-way, pointto-multi-point radio service allocated

high quality channels of

communications and authorized under

part 95 of the Commission’s rules. The

IVDS provides information, products,

and services, and also the capability to

obtain responses from subscribers in a

specific service area. The IVDS is

offered on a private carrier basis. The

Commission does not anticipate

receiving any applications in the IVDS

during FY 1998. Therefore, for FY 1998,

there is no regulatory fee for IVDS

licensees.

b. Shared Use Services

7. Marine (Ship) Service: This service

is a shipboard radio service authorized

under part 80 of the Commission’s rules

to provide telecommunications between

watercraft or between watercraft and

shore-based stations. Radio installations

are required by domestic and

international law for large passenger or

cargo vessels. Radio equipment may be

voluntarily installed on smaller vessels,

such as recreational boats. The

Telecommunications Act of 1996 gave

the Commission the authority to license

certain ship stations by rule rather than

by individual license. Private boat

operators sailing entirely within

domestic U.S. waters and who are not

otherwise required by treaty or

agreement to carry a radio, are no longer

required to hold a marine license, and

they will not be required to pay a

regulatory fee. For FY 1998, parties

required to be licensed and those

choosing to be licensed for Marine

(Ship) Stations will pay a $6 annual

regulatory fee per station, payable for an

entire ten-year license term at the time

of application for a new, renewal, or

reinstatement license. The total

regulatory fee due is $60 for the ten year

license term.

8. Marine (Coast) Service: This service

includes land-based stations in the

maritime services, authorized under

part 80 of the Commission’s rules, to

provide communications services to

ships and other watercraft in coastal and

inland waterways. For FY 1998,

licensees of Marine (Coast) Stations will

pay a $6 annual regulatory fee per call

sign, payable for the entire five-year

license term at the time of application

for a new, renewal, or reinstatement

license. The total regulatory fee due is

$30 per call sign for the five-year license

term.

9. Private Land Mobile (Other)

Services: These services include Land

Mobile Radio Services operating under
35876 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

143Section 9(h) exempts ‘‘amateur radio operator

licenses under part 97 of the Commission’s rules

(47 CFR part 97)’’ from the requirement. However,

section 9(g)’s fee schedule explicitly includes

‘‘Amateur vanity call signs’’ as a category subject to

the payment of a regulatory fee.

144This category does not include licensees of

private shared-use 220 MHz and 470 MHz and

above in the Specialized Mobile Radio (SMR)

service who have elected to remain noncommercial. Those who have elected not to change

to the Commercial Mobile Radio Service (CMRS)

are referred to paragraph 4 of this Attachment.

parts 90 and 95 of the Commission’s

rules. Services in this category provide

one- or two-way communications

between vehicles, persons or fixed

stations on a shared basis and include

radiolocation services, industrial radio

services, and land transportation radio

services. For FY 1998, licensees of

services in this category will pay a $6

annual regulatory fee per call sign,

payable for an entire five-year license

term at the time of application for a

new, renewal, or reinstatement license.

The total regulatory fee due is $30 for

the five-year license term.

10. Aviation (Aircraft) Service: These

services include stations authorized to

provide communications between

aircraft and between aircraft and ground

stations and include frequencies used to

communicate with air traffic control

facilities pursuant to part 87 of the

Commission’s rules. The

Telecommunications Act of 1996 gave

the Commission the authority to license

certain aircraft radio stations by rule

rather than by individual license.

Private aircraft operators flying entirely

within domestic U.S. airspace and who

are not otherwise required by treaty or

agreement to carry a radio are no longer

required to hold an aircraft license, and

they will not be required to pay a

regulatory fee. For FY 1998, parties

required to be licensed and those

choosing to be licensed for Aviation

(Aircraft) Stations will pay a $6 annual

regulatory fee per station, payable for

the entire ten-year license term at the

time of application for a new, renewal,

or reinstatement license. The total

regulatory fee due is $60 per station for

the ten-year license term.

11. Aviation (Ground) Service: This

service includes stations authorized to

provide ground-based communications

to aircraft for weather or landing

information, or for logistical support

pursuant to part 87 of the Commission’s

rules. Certain ground-based stations

which only serve itinerant traffic, i.e.,

possess no actual units on which to

assess a fee, are exempt from payment

of regulatory fees. For FY 1998,

licensees of Aviation (Ground) Stations

will pay a $6 annual regulatory fee per

license, payable for the entire five-year

license term at the time of application

for a new, renewal, or reinstatement

license. The total regulatory fee is $30

per call sign for the five-year license

term.

12. General Mobile Radio Service

(GMRS): These services include Land

Mobile Radio licensees providing

personal and limited business

communications between vehicles or to

fixed stations for short-range, two-way

communications pursuant to part 95 of

the Commission’s rules. For FY 1998,

GMRS licensees will pay a $6 annual

regulatory fee per license, payable for an

entire five-year license term at the time

of application for a new, renewal or

reinstatement license. The total

regulatory fee due is $30 per license for

the five-year license term.

c. Amateur Radio Vanity Call Signs

13. Amateur Vanity Call Signs: This

fee covers voluntary requests for

specific call signs in the Amateur Radio

Service authorized under part 97 of the

Commission’s rules. For FY 1998,

applicants for Amateur Vanity CallSigns will pay a $1.30 annual regulatory

fee per call sign, payable for an entire

ten-year license term at the time of

application for a vanity call sign. The

total regulatory fee due would be $13

per license for the ten-year license

term.143

d. Commercial Wireless Radio Services

14. Commercial Mobile Radio

Services (CMRS) Mobile Services: The

Commercial Mobile Radio Service

(CMRS) is an ‘‘umbrella’’ descriptive

term attributed to various existing

broadband services authorized to

provide interconnected mobile radio

services for profit to the public, or to

such classes of eligible users as to be

effectively available to a substantial

portion of the public. CMRS Mobile

Services include certain licensees which

formerly were licensed as part of the

Private Radio Services (e.g., Specialized

Mobile Radio Services) and others

formerly licensed as part of the

Common Carrier Radio Services (e.g.,

Public Mobile Services and Cellular

Radio Service). While specific rules

pertaining to each covered service

remain in separate parts 22, 24, 80 and

90, general rules for CMRS are

contained in part 20. CMRS Mobile

Services will include: Specialized

Mobile Radio Services (part 90); 144

Personal Communications Services (part

24), Public Coast Stations (part 80);

Public Mobile Radio (Cellular, 800 MHz

Air-Ground Radiotelephone, and

Offshore Radio Services) (part 22). Each

licensee in this group will pay an

annual regulatory fee for each mobile or

cellular unit (mobile or cellular call sign

or telephone number), assigned to its

customers, including resellers of its

services. For FY 1998, the regulatory fee

is $.29 per unit.

15. Commercial Mobile Radio

Services (CMRS) Messaging Services:

The Commercial Mobile Radio Service

(CMRS) is an ‘‘umbrella’’ descriptive

term attributed to various existing

narrowband services authorized to

provide interconnected mobile radio

services for profit to the public, or to

such classes of eligible users as to be

effectively available to a substantial

portion of the public. CMRS Messaging

Services include certain licensees which

formerly were licensed as part of the

Private Radio Services (e.g., Private

Paging, qualifying interconnected

Business Radio Services, and 220–222

MHz Land Mobile Systems), licensees

formerly licensed as part of the

Common Carrier Radio Services (e.g.,

Public Mobile One-Way Paging), and

licensees of Personal Communications

Service (PCS) one-way and two-way

paging. While specific rules pertaining

to each covered service remain in

separate parts 22, 24 and 90, general

rules for CMRS are contained in part 20.

We have replaced the CMRS One-Way

Paging regulatory fee category with a

CMRS Messaging Services category for

regulatory fee collection purposes. Each

licensee in the CMRS Messaging

Services will pay an annual regulatory

fee for each unit (pager, telephone

number, or mobile) assigned to its

customers, including resellers of its

services. For FY 1998, the regulatory fee

is $.04 per unit.

16. Finally, we are reiterating our

definition of CMRS payment units to

make it clear that fees are assessable on

each PCS or cellular telephone and each

one-way or two-way pager capable of

receiving or transmitting information,

whether or not the unit is ‘‘active’’ on

the ‘‘as of’’ date for payment of these

fees. The unit becomes ‘‘feeable’’ if the

end user or assignee of the unit has

possession of the unit and the unit is

capable of transmitting or receiving

voice or non-voice messages or data and

the unit is either owned and operated by

the licensee of the CMRS system or a

reseller, or the end user of a unit has a

contractual agreement for provision of a

CMRS service from a licensee of a

CMRS system or a reseller of a CMRS

service. The responsible payer is the

CMRS licensee. For example, John Doe

purchases a pager and contractually

obtains paging services from Pagin

Licensee X. Paging Licensee X is

responsible for paying the applicable

regulatory fee for this unit. Likewise,

Cellular Licensee Y donates cellular
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35877

145The Commission acknowledges that certain

stations operating in Puerto Rico and Guam have

been assigned a higher level station class than

would be expected if the station were located on the

mainland. Although this results in a higher

regulatory fee, we believe that the increased

interference protection associated with the higher

station class is necessary and justifies the

fee.Stations for FY 1998 are as follows:

telephones to a high school and the high

school either pays for or obtains free

service from the Cellular Licensee Y. In

this situation, Cellular Licensee Y is

responsible for paying the applicable

regulatory fee for these units.

2. Mass Media Services

17. The regulatory fees for the Mass

Media fee category apply to broadcast

licensees and permittees.

Noncommercial Educational

Broadcasters are exempt from regulatory

fees.

a. Commercial Radio

18. These categories include licensed

Commercial AM (Classes A, B, C, and D)

and FM (Classes A, B, B1, C, C1, C2, and

C3) Radio Stations operating under part

73 of the Commission’s rules.145 In

response to numerous requests, we have

combined class of station and grade B

contour population data to formulate a

schedule of radio fees which

differentiate between stations based on

class of station and population served.

In general, higher class stations and

stations in metropolitan areas will pay

higher fees than lower class stations and

stations located in rural areas. The

specific fee that a station must pay is

determined by where it ranks after

weighting its fee requirement

(determined by class of station) with its

population. The regulatory fee

classifications for Radio Stations or FY

1998 are as follows:

RADIO STATION REGULATORY FEES

Population served AM class A AM class B AM class C AM class D FM classes

A, B1 & C3

FM classes

B, C, C1 &

C2

<=20,000 ........................................................................... 400 300 200 250 300 400

20,001–50,000 .................................................................. 750 600 300 400 600 750

50,001–125,000 ................................................................ 1,250 800 400 600 800 1,250

125,001–400,000 .............................................................. 1,750 1,250 600 750 1,250 1,750

400,001–1,000,000 ........................................................... 2,500 2,000 1,000 1,250 2,000 2,500

>1,000,000 ........................................................................ 4,000 3,250 1,500 2,000 3,250 4,000

19. Licensees may determine the

appropriate fee payment by referring to

the list provided at Attachment L to this

Report and Order. This same

information will be available on the

FCC’s internet world wide web site

(http://www.fcc.gov), by calling the

FCC’s National Call Center (1–888–225–

5322), and will be included in the

Public Notices mailed to each licensee.

b. Construction Permits—Commercial

AM Radio

20. This category includes holders of

permits to construct new Commercial

AM Stations. For FY 1998, permittees

will pay a fee of $235 for each permit

held. Upon issuance of an operating

license, this fee would no longer be

applicable and licensees would be

required to pay the applicable fee for the

designated class of the station.

c. Construction Permits—Commercial

FM Radio

21. This category includes holders of

permits to construct new Commercial

FM Stations. For FY 1998, permittees

will pay a fee of $1,150 for each permit

held. Upon issuance of an operating

license, this fee would no longer be

applicable. Instead, licensees would pay

a regulatory fee based upon the

designated class of the station.

d. Commercial Television Stations

22. This category includes licensed

Commercial VHF and UHF Television

Stations covered under part 73 of the

Commission’s rules, except commonly

owned Television Satellite Stations,

addressed separately below. Markets are

Nielsen Designated Market Areas (DMA)

as listed in the Television & Cable

Factbook, Stations Volume No. 66, 1998

Edition, Warren Publishing, Inc. The

fees for each category of station are as

follows:

VHF Markets 1–10 ....................... $37,575

VHF Markets 11–25 ..................... 31,275

VHF Markets 26–50 ..................... 21,400

VHF Markets 51–100 ................... 11,975

VHF Remaining Markets ............. 3,100

UHF Markets 1–10 ....................... $14,175

UHF Markets 11–25 ..................... 10,725

UHF Markets 26–50 ..................... 6,650

UHF Markets 51–100 ................... 3,975

UHF Remaining Markets ............. 1,075

e. Commercial Television Satellite

Stations

23. Commonly owned Television

Satellite Stations in any market

(authorized pursuant to Note 5 of

73.3555 of the Commission’s rules) that

retransmit programming of the primary

station are assessed a fee of $1,175

annually. Those stations designated as

Television Satellite Stations in the 1998

Edition of the Television and Cable

Factbook are subject to the fee

applicable to Television Satellite

Stations. All other television licensees

are subject to the regulatory fee payment

required for their class of station and

market.

f. Construction Permits—Commercial

VHF Television Stations

24. This category includes holders of

permits to construct new Commercial

VHF Television Stations. For FY 1998,

VHF permittees will pay an annual

regulatory fee of $2,525. Upon issuance

of an operating license, this fee would

no longer be applicable. Instead,

licensees would pay a fee based upon

the designated market of the station.

g. Construction Permits—Commercial

UHF Television Stations

25. This category includes holders of

permits to construct new UHF

Television Stations. For FY 1998, UHF

Television permittees will pay an

annual regulatory fee of $2,650. Upon

issuance of an operating license, this fee

would no longer be applicable. Instead,

licensees would pay a fee based upon

the designated market of the station.
35878 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

146Cable systems are to pay their regulatory fees

on a per subscriber basis rather than per 1,000

subscribers as set forth in the statutory fee schedule.

See FY 1994 Report and Order at paragraph 100.

h. Construction Permits—Satellite

Television Stations

26. The fee for UHF and VHF

Television Satellite Station construction

permits for FY 1998 is $420. An

individual regulatory fee payment is to

be made for each Television Satellite

Station construction permit held.

i. Low Power Television, FM Translator

and Booster Stations, TV Translator and

Booster Stations

27. This category includes Low Power

UHF/VHF Television stations operating

under part 74 of the Commission’s rules

with a transmitter power output limited

to 1 kW for a UHF facility and,

generally, 0.01 kW for a VHF facility.

Low Power Television (LPTV) stations

may retransmit the programs and signals

of a TV Broadcast Station, originate

programming, and/or operate as a

subscription service. This category also

includes translators and boosters

operating under part 74 which

rebroadcast the signals of full service

stations on a frequency different from

the parent station (translators) or on the

same frequency (boosters). The stations

in this category are secondary to full

service stations in terms of frequency

priority. We have also received requests

for waivers of the regulatory fees from

operators of community based

Translators. These Translators are

generally not affiliated with commercial

broadcasters, are nonprofit,

nonprofitable, or only marginally

profitable, serve small rural

communities, and are supported

financially by the residents of the

communities served. We are aware of

the difficulties these Translators have in

paying even minimal regulatory fees,

and we have addressed those concerns

in the ruling on reconsideration of the

FY 1994 Report and Order. Community

based Translators are exempt from

regulatory fees. For FY 19978 licensees

in low power television, FM translator

and booster, and TV translator and

booster category will pay a regulatory

fee of $265 for each license held.

j. Broadcast Auxiliary Stations

28. This category includes licensees of

remote pickup stations (either base or

mobile) and associated accessory

equipment authorized pursuant to a

single license, Aural Broadcast

Auxiliary Stations (Studio Transmitter

Link and Inter-City Relay) and

Television Broadcast Auxiliary Stations

(TV Pickup, TV Studio Transmitter

Link, TV Relay) authorized under part

74 of the Commission’s rules. Auxiliary

Stations are generally associated with a

particular television or radio broadcast

station or cable television system. This

category does not include translators

and boosters (see paragraph 26 infra).

For FY 1998, licensees of Commercial

Auxiliary Stations will pay an $11

annual regulatory fee on a per call sign

basis.

k. Multipoint Distribution Service

29. This category includes Multipoint

Distribution Service (MDS), and

Multichannel Multipoint Distribution

Service (MMDS), authorized under part

21 of the Commission’s rules to use

microwave frequencies for video and

data distribution within the United

States. For FY 1998, MDS and MMDS

stations will pay an annual regulatory

fee of $260 per call sign.

3. Cable Services

a. Cable Television Systems

30. This category includes operators

of Cable Television Systems, providing

or distributing programming or other

services to subscribers under part 76 of

the Commission’s rules. For FY 1998,

Cable Systems will pay a regulatory fee

of $.44 per subscriber.146 Payments for

Cable Systems are to be made on a per

subscriber basis as of December 31,

1997. Cable Systems should determine

their subscriber numbers by calculating

the number of single family dwellings,

the number of individual households in

multiple dwelling units, e.g.,

apartments, condominiums, mobile

home parks, etc., paying at the basic

subscriber rate, the number of bulk rate

customers and the number of courtesy

or fee customers. In order to determine

the number of bulk rate subscribers, a

system should divide its bulk rate

charge by the annual subscription rate

for individual households. See FY 1994

Report and Order, Appendix B at

paragraph 31.

b. Cable Antenna Relay Service

31. This category includes Cable

Antenna Relay Service (CARS) stations

used to transmit television and related

audio signals, signals of AM and FM

Broadcast Stations, and cablecasting

from the point of reception to a terminal

point from where the signals are

distributed to the public by a Cable

Television System. For FY 1998,

licensees will pay an annual regulatory

fee of $50 per CARS license.

4. Common Carrier Services

a. Commercial Microwave (Domestic

Public Fixed Radio Service)

32. This category includes licensees

in the Point-to-Point Microwave Radio

Service, Local Television Transmission

Radio Service, and Digital Electronic

Message Service, authorized under part

101 of the Commission’s rules to use

microwave frequencies for video and

data distribution within the United

States. These services are now included

in the Microwave category (see

paragraph 5 infra).

b. Interstate Telephone Service

Providers

33. This category includes InterExchange Carriers (IXCs), Local

Exchange Carriers (LECs), Competitive

Access Providers (CAPs), domestic and

international carriers that provide

operator services, Wide Area Telephone

Service (WATS), 800, 900, telex,

telegraph, video, other switched,

interstate access, special access, and

alternative access services either by

using their own facilities or by reselling

facilities and services of other carriers or

telephone carrier holding companies,

and companies other than traditional

local telephone companies that provide

interstate access services to long

distance carriers and other customers.

This category also includes pre-paid

calling card providers. These common

carriers, including resellers, must

submit fee payments based upon their

proportionate share of gross interstate

revenues using the methodology that we

have adopted for calculating

contributions to the TRS fund. See

Telecommunications Relay Services, 8

FCC Rcd 5300 (1993), 58 FR 39671 (July

26, 1993). In order to avoid imposing

any double payment burden on

resellers, we will permit carriers to

subtract from their gross interstate

revenues, as reported to NECA in

connection with their TRS contribution,

any payments made to underlying

common carriers for

telecommunications facilities and

services, including payments for

interstate access service, that are sold in

the form of interstate service. For this

purpose, resold telecommunications

facilities and services are only intended

to include payments that correspond to

revenues that will be included by

another carrier reporting interstate

revenue. For FY 1998, carriers must

multiply their adjusted gross revenue

figure (gross revenue reduced by the

total amount of their payments to

underlying common carriers for

telecommunications facilities or
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35879

147Mobile earth stations are hand-held or vehiclebased units capable of operation while the operator

or vehicle is in motion. In contrasts, transportable

units are moved to a fixed location and operate in

a stationary (fixed) mode. Both are assessed the

same regulatory fee for FY 1997.

services) by the factor 0.0011 to

determine the appropriate fee for this

category of service. Regulatees may

want to use the following worksheet to

determine their fee payment:

Total Interstate

(1) Revenue reported in TRS Fund worksheets .............................................................................................................. .................... ....................

(2) Less: Access charges paid ........................................................................................................................................ .................... ....................

(3) Less: Other telecommunications facilities and services taken for resale .................................................................. .................... ....................

(4) Adjusted revenues (1)minus(2)minus(3) .................................................................................................................... .................... ....................

(5) Fee factor ................................................................................................................................................................... .................... 0.0011

(6) Fee due (4)times(5) .................................................................................................................................................... .................... ....................

5. International Services

a. Earth Stations

34. Very Small Aperture Terminal

(VSAT) Earth Stations, equivalent CBand Earth Stations and antennas, and

earth station systems comprised of very

small aperture terminals operate in the

12 and 14 GHz bands and provide a

variety of communications services to

other stations in the network. VSAT

systems consist of a network of

technically-identical small FixedSatellite Earth Stations which often

include a larger hub station. VSAT Earth

Stations and C-Band Equivalent Earth

Stations are authorized pursuant to part

25 of the Commission’s rules. Mobile

Satellite Earth Stations, operating

pursuant to part 25 of the Commission’s

rules under blanket licenses for mobile

antennas (transceivers), are smaller than

one meter and provide voice or data

communications, including position

location information for mobile

platforms such as cars, buses, or

trucks.147 Fixed-Satellite Transmit/

Receive and Transmit-Only Earth

Station antennas, authorized or

registered under part 25 of the

Commission’s rules, are operated by

private and public carriers to provide

telephone, television, data, and other

forms of communications. Included in

this category are telemetry, tracking and

control (TT&C) earth stations, and earth

station uplinks. For FY 1998, licensees

of VSATs, Mobile Satellite Earth

Stations, and Fixed-Satellite Transmit/

Receive and Transmit-Only Earth

Stations will pay a fee of $165 per

authorization or registration as well as

a separate fee of $165 for each

associated Hub Station.

35. Receive-only earth stations. For

FY 1998, there is no regulatory fee for

receive-only earth stations.

b. Space Stations (Geostationary)

36. Geostationary Space Stations are

domestic and international satellites

positioned in orbit to remain

approximately fixed relative to the

earth. Most are authorized under part 25

of the Commission’s rules to provide

communications between satellites and

earth stations on a common carrier and/

or private carrier basis. In addition, this

category includes Direct Broadcast

Satellite (DBS) Service which includes

space stations authorized under part 100

of the Commission’s rules to transmit or

re-transmit signals for direct reception

by the general public encompassing

both individual and community

reception. For FY 1998, entities

authorized to operate geostationary

space stations (including DBS satellites)

will be assessed an annual regulatory

fee of $97,975 per operational station in

orbit. Payment is required for any

geostationary satellite that has been

launched and tested and is authorized

to provide service.

c. Space Stations (Non-Geostationary)

37. Non-geostationary Orbit (NGSO)

Systems (such as Low Earth Orbit

Satellite Systems) are space stations that

orbit the earth in non-geostationary

orbit. They are authorized under part 25

of the Commission’s rules to provide

communications between satellites and

earth stations on a common carrier and/

or private carrier basis. For FY 1998,

entities authorized to operate NGSOs

will be assessed an annual regulatory

fee of $164,800 per operational system

in orbit. Payment is required for any

NGSO System that has one or more

satellites operational. In our FY 1997

Report and Order at paragraph 75 we

retained our requirement that licensees

of LEOs pay the LEO regulatory fee

upon certification of operation of a

single satellite pursuant to section

25.120(d) subsequently renumbered as

§ 25.121(d). We require payment of this

fee following commencement of

operations of a system’s first satellite to

insure that we recover our regulatory

costs related to LEO systems from

licensees of these systems as early as

possible so that other regulatees are not

burdened with these costs any longer

than necessary. Because § 25.121(d) has

significant implications beyond

regulatory fees (such as whether the

entire planned cluster is operational in

conditions of the license) we are

clarifying our current definition of an

operational LEO satellite to prevent

misinterpretation of our intent as

follows:

Licensees of non-geostationary

satellite systems (such as LEOs) are

assessed a regulatory fee upon the

commencment of operation of a

system’s first satellite as reported

annually pursuant to §§ 25.142(c),

25.143(e), 25.145(g), or upon

certification of operation of a single

satellite pursuant to § 25.120(d).

d. International Bearer Circuits

38. Regulatory fees for International

Bearer Circuits are to be paid by

facilities-based common carriers (either

domestic or international) activating the

circuit in any transmission facility for

the provision of service to an end user

or resale carrier. Payment of the fee for

bearer circuits by non-common carrier

submarine cable operators is required

for circuits sold on an indefeasible right

of use (IRU) basis or leased to any

customer, including themselves or their

affiliates, other than an international

common carrier authorized by the

Commission to provide U.S.

international common carrier services.

Compare FY 1994 Report and Order at

5367. Payment of the international

bearer circuit fee is also required by

non-common carrier satellite operators

for circuits sold or leased to any

customer, including themselves or their

affiliates, other than an international

common carrier authorized by the

Commission to provide U.S.

international common carrier services.

The fee is based upon active 64 Kbps

circuits, or equivalent circuits. Under

this formulation, 64 Kbps circuits or

their equivalent will be assessed a fee.

Equivalent circuits include the 64 Kbps
35880 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations

circuit equivalent of larger bit stream

circuits. For example, the 64 Kbps

circuit equivalent of a 2.048 Mbps

circuit is 30 64 Kbps circuits. Analog

circuits such as 3 and 4 KHz circuits

used for international service are also

included as 64 Kbps circuits. However,

circuits derived from 64 Kbps circuits

by the use of digital circuit

multiplication systems are not

equivalent 64 Kbps circuits. Such

circuits are not subject to fees. Only the

64 Kbps circuit from which they have

been derived will be subject to payment

of a fee. For FY 1998, the regulatory fee

is $6.00 for each active 64 Kbps circuit

or equivalent. For analog television

channels we will assess fees as follows:

Analog television channel size

in MHz

No. of

equivalent

64 Kbps circuits

36 .............................................. 630

24 .............................................. 288

18 .............................................. 240

e. International Public Fixed

39. This fee category includes

common carriers authorized under part

23 of the Commission’s rules to provide

radio communications between the

United States and a foreign point via

microwave or HF troposcatter systems,

other than satellites and satellite earth

stations, but not including service

between the United States and Mexico

and the United States and Canada using

frequencies above 72 MHz. For FY 1998,

International Public Fixed Radio Service

licensees will pay a $375 annual

regulatory fee per call sign.

f. International (HF) Broadcast

40. This category covers International

Broadcast Stations licensed under part

73 of the Commission’s rules to operate

on frequencies in the 5,950 KHz to

26,100 KHz range to provide service to

the general public in foreign countries.

For FY 1998, International HF Broadcast

Stations will pay an annual regulatory

fee of $475 per station license.

Attachment I—Description of FCC

Activities

I. Activities That Are Not Included in

Regulatory Fees

1. Authorization of Service

The authorization or licensing of

radio stations, telecommunications

equipment, and radio operators, as well

as the authorization of common carrier

and other services and facilities.

Includes policy direction, program

development, legal services, and

executive direction, as well as support

services associated with authorization

activities. Although Authorization of

Service is described in this attachment,

it is not one of the activities included as

a feeable activity for regulatory fee

purposes pursuant to section 9(a)(1) of

the Act. 47 U.S.C. 159(a)(1).

II. Activities That are Included in

Regulatory Fees

2. Policy and Rulemaking

Formal inquiries, rulemaking

proceedings to establish or amend the

Commission’s rules and regulations,

action on petitions for rulemaking, and

requests for rule interpretations or

waivers; economic studies and analyses;

spectrum planning, modeling,

propagation-interference analyses, and

allocation; and development of

equipment standards. Includes policy

direction, program development, legal

services, and executive direction, as

well as support services associated with

policy and rulemaking activities.

3. Enforcement

Enforcement of the Commission’s

rules, regulations and authorizations,

including investigations, inspections,

compliance monitoring, and sanctions

of all types. Also includes the receipt

and disposition of formal and informal

complaints regarding common carrier

rates and services, the review and

acceptance/rejection of carrier tariffs,

and the review, prescription and audit

of carrier accounting practices. Includes

policy direction, program development,

legal services, and executive direction,

as well as support services associated

with enforcement activities.

4. Public Information Services

The publication and dissemination of

Commission decisions and actions, and

related activities; public reference and

library services; the duplication and

dissemination of Commission records

and databases; the receipt and

disposition of public inquiries;

consumer, small business, and public

assistance; and public affairs and media

relations. Includes policy direction,

program development, legal services,

and executive direction, as well as

support services associated with public

information activities.

Attachment J—Factors, Measurements

and Calculations That Go Into

Determining Station Signal Contours

and Associated Population Coverages

AM Stations

Specific information on each day

tower, including field ratio, phasing,

spacing and orientation was retrieved,

as well as the theoretical pattern RMS

figure (mV/m @ 1 km) for the antenna

system. The standard, or modified

standard if pertinent, horizontal plane

radiation pattern was calculated using

techniques and methods specified in

§ 73.150 and 73.152 of the

Commission’s rules. See 47 U.S.C.

73.150 and 73.152. Radiation values

were calculated for each of 72 radials

around the transmitter site (every 5

degrees of azimuth). Next, estimated soil

conductivity data was retrieved from a

database representing the information in

FCC Figure M3. Using the calculated

horizontal radiation values, and the

retrieved soil conductivity data, the

distance to the city grade (5 mV/m)

contour was predicted for each of the 72

radials. The resulting distance to city

grade contours were used to form a

geographical polygon. Population

counting was accomplished by

determining which 1990 block centroids

were contained in the polygon. The sum

of the population figures for all enclosed

blocks represents the total population

for the predicted city grade coverage

area.

FM Stations

The maximum of the horizontal and

vertical HAAT (m) and ERP (kW) was

used. Where the antenna HAMSL was

available, it was used in lieu of the

overall HAAT figure to calculate

specific HAAT figures for each of 72

radials under study. Any available

directional pattern information was

applied as well, to produce a radialspecific ERP figure. The HAAT and ERP

figures were used in conjunction with

the propagation curves specified in

§ 73.313 of the Commission’s rules to

predict the distance to the city grade (70

dBuV/m or 3.17 mV/m) contour for each

of the 72 radials. See 47 U.S.C. 73.313.

The resulting distance to city grade

contours were used to form a

geographical polygon. Population

counting was accomplished by

determining which 1990 block centroids

were contained in the polygon. The sum

of the population figures for all enclosed

blocks represents the total population

for the predicted city grade coverage

area.

Attachment K—Parties Filing

Comments and Reply Comments

Parties Filing Comments on the Notice

of Proposed Rule Making

Named State Broadcasters Associations

National Association of Broadcasters

SBC Communications, Inc.

Columbia Communications Corp.

GE American Communications, Inc.
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 /Rules and Regulations 35881

Loral Space & Communications Ltd.

Orbital Communications Corp.

PanAmSat Corp.

Satellite Industry Association

BellSouth Wireless Data

Paging Network, Inc.

Personal Communications Industry

Association

Small business In Telecommunications

American Radio Relay League

Parties Filing Reply Comments on the

Notice of Proposed Rule Making

GE American Communications, Inc.

PanAmSat Corp.

BellSouth Cellular Corp. & Wireless

Data, L.P.

Paging Network, Inc.

PrimeCo Personal Communications

American Mobile Telecommunications

Association, Inc.

Comcast Cellular Communications, Inc.

Attachment L—AM and FM Radio

Regulatory Fees

(List will be filed in the Docket file for

this proceeding to avoid publication

costs.)

[FR Doc. 98–17222 Filed 6–30–98; 8:45 am]

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